CIMB Bank Philippines Inc., a part of the CIMB Group, one of ASEAN’s leading banks present in over 16 global markets, is currently seeking additional partners to provide embedded banking services to more Overseas Filipino Workers (OFWs) and Micro, Small, and Medium-Sized Enterprises (MSMEs).
Overseas Filipino Workers (OFWs) arriving home to the Philippines
The incorporation of banking services into non-banking platforms, such as e-commerce websites, social media applications, or super apps, is referred to as “embedded banking.”
According to the bank, embedded banking aspires to effortlessly connect banking services with financial service platforms and ecosystems. This way, customers can conveniently access a variety of banking services without the need for different applications or interfaces by integrating financial capabilities into these platforms.
It is also touted to give non-banking organizations the ability to monetize their customer bases by offering payments, savings, and loan options that can benefit the country’s tech-savvy Filipino customers.
Establishing itself at client touchpoints
“In the near future, (we) will be introducing additional embedded banking partners and distinctive product features,” said Suraj Ramchandani, chief growth officer at CIMB Bank Philippines.
“This will allow them to live their mission as deservingly as everyone else, this would help offer easier access to the frequently underserved demographic, such as the overseas Filipinos and the micro and small to medium entrepreneurs,” he added.
The potential for increased financial inclusion is one advantage of embedded banking. Banks can reach a larger consumer base by expanding their service offerings through partnerships with service providers.
This includes segments that were previously underserved and may have lacked access to financial services in the past due to various Know Your Customer (KYC) requirements from conventional banks.
Ramchandani further claims that the institution invented the ecosystem play.
Building successful partnerships
An illustration of one of their successful partners, according to Ramchandanihe, is the operator of GCash G-Xchange Inc., a subsidiary of Mynt, which in turn is a wholly-owned financial services subsidiary of Globe Telecom.
It offers GCash, an internationally acclaimed micro-payment service that transforms the mobile phone into a virtual wallet for secure, fast, and convenient money transfer.
One way to view this partnership is through the “CIMB GSave,” the first-ever bank account that you can open and maintain straight from your GCash account. As a digital financial service, it offers a high savings rate.
Two excellent examples are the GCredit function in the mobile wallet GCash, as well as the SPayLater option in the e-commerce platform of Shopee Southeast Asia Ltd., both of which CIMB underwrites.
With the help of this strategy, those who previously had few banking options can now use a wider variety of products and services.
About GCredit, Ramchandani says GCash currently offers the infrastructure through which the product is now being offered, while CIMB administers the portfolio. These, he claimed, can lead to Filipinos being empowered with a digital revolving credit line they can use across various merchants and payment needs.
“Service providers would need to integrate finance and banking capabilities into their ecosystems and platforms as more services become digital. We take on the responsibility of bringing the bank to the consumer where they go about their everyday business,” explains Ramchandani.
