FINANCIAL TECHNOLOGY (Fintech) player UBX Philippines Corp. of the Aboitiz family has partnered with a foreign digital platform to enable cross-border online money transfers between the Philippines and Singapore.
UBX entered into a partnership with ThitsaWorks Pte. Ltd., a fintech backed by the Monetary Authority of Singapore, targeting more than 500,000 Filipinos in Singapore sending remittances. UBX has not disclosed the value of the deal.
Under the terms of the agreement, UBX will provide the infrastructure for remittances between Singapore and the Philippines via its Banking-as-a-Service platform.
John Januszczak, UBX’s president and CEO, said they entered into an agreement to squeeze out competitors who broadcast to rural areas and offer complicated, expensive and slow services.
Filipinos who only have accounts with microfinance institutions (MFIs) and rural banks can receive direct remittances from anyone in Singapore, Januszczak said.
The executive said he is “confident that this partnership will also accelerate financial inclusion in the Philippines by giving customers in all regions of the archipelago – no matter how rural or remote – access to secure and connected payments through any financial service provider.” , including rural banks. Cooperatives and other community-based financial institutions.”
Nyi Nyein Aye, CEO of ThitsaWorks, was also quoted in the statement as saying he believes the deal “will have a positive impact on Singapore’s outbound migrant remittance challenges, which we are witnessing on a daily basis”. Aye gave no details on these challenges.
UBX expects the deal to go into effect in the first quarter of 2023. About 600,000 foreign Filipinos in Singapore remit about SGD 2.8 billion annually, the company said.