Rizal Commercial Banking Corporation (RCBC) and Hungarian fintech leaders, Peak and Columbus Private Equity Fund launched the Philippines’ first embedded finance initiative for overseas Filipino workers (OFWs).
This groundbreaking collaboration comes in time with the Philippines’ 50th anniversary of diplomatic relations with Hungary.
The partnership is set to revolutionize the way OFWs manage their finances. Soon, OFWs will be able to download the Peak mobile app, which includes RCBC’s embedded digital banking platform.
With this single app, they can seamlessly open both RCBC peso and Hungarian foreign accounts. This innovation will greatly assist OFWs in managing their financial affairs while working abroad and supporting their families in the Philippines.
The partnership is supported by the Hungarian government through its Foreign Affairs and Trade Ministry.
OFWs will gain access to a comprehensive range of digital financial services, including RCBC’s digital lending options like salary advances, home and car loans, and personal loans. They will also have the ability to transfer funds to their loved ones, invest in various financial solutions, secure medical insurance, and access other empowering services from RCBC, Peak, and Columbus.
The initiative’s pilot program is scheduled to kickstart in Hungary, a country experiencing a significant surge in its labor market. Hungarian Prime Minister Viktor Orbán’s call for 500,000 new workers over the next few years has emphasized the growing demand for labor, with Filipino workers being favored for their English proficiency, cultural adaptability, and strong work ethic.
The OFW community in Hungary is poised to expand to over 60,000 by 2025, and over 6,000 OFWs were sent there in the current year alone. OFWs working in manufacturing and agriculture sectors in Hungary enjoy attractive compensation packages, free accommodations, and meals, making them a sought-after workforce.
This growth in the Filipino workforce in Hungary has caught the attention of banks like RCBC and Peak, prompting their collaboration to offer services through the power of API technology.
Bankero, RCBC’s President and Chief Executive Officer, Eugene S. Acevedo, underlines the importance of this partnership in uplifting the lives of OFWs and the bank’s enthusiasm for playing a significant role in this endeavor.
He emphasizes that financial inclusion should extend beyond individuals working within the country, reaching hardworking expatriates sending money back home to support their families.
Meanwhile, Lito Villanueva, RCBC’s Executive Vice President and Chief Innovation and Inclusion Officer, emphasizes that this partnership, together with Peak and Columbus, is redefining financial inclusion through embedded finance, providing a unique value proposition and shaping the future of digital banking.
The goal is to empower migrant workers to achieve both short-term and long-term financial goals, regardless of their location or needs.
A 2023 report by global consultancy firm McKinsey highlights the potential of the initiative. The report revealed that approximately US$30.5 billion in remittances flow into the Philippines annually, yet banks have not fully integrated remittances into mainstream services or credit profiling for Filipinos.
These findings motivated RCBC to address the specific financial needs of overseas workers and their families.
RCBC has been actively expanding its digital banking services through platforms like RCBC Pulz, RCBC Diskartech, and RCBC ATM Go, which are capable of processing and accepting remittances.
With this recent partnership with Peak, RCBC is positioned to become one of the leading digital-centric banks, focused on making financial services accessible to a broader segment of unbanked and underserved Filipinos, regardless of their location.
