Lawmaker: Revised OFBank charter to empower Filipinos abroad

By Zaldy De Layola, Philippine News Agency

Since 2020, the Land Bank of the Philippines (LBP) has led the creation of OFBank, a digital-only, branchless bank designed for overseas Filipinos. (File Photo By McpoJMdeLeon/Wikimedia Commons, CC BY-SA 4.0)

MANILA – KABAYAN Partylist Rep. Ron Salo has filed a measure seeking to institutionalize the Overseas Filipino Bank (OFBank) to provide a comprehensive solution to the financial needs of Filipinos working and living abroad.

Filed on Feb. 4, House Bill No. 11424, or the Overseas Filipino Bank Act, seeks to establish OFBank as the nation’s primary digital bank for overseas Filipinos (OFs) and their families.

In pushing for the passage of the measure, Salo noted that despite the significant economic contributions of OFs, they face challenges in accessing efficient, secure, and affordable banking services.

“It’s crucial that we harness the power of digital banking to provide overseas Filipinos with seamless, secure financial services while promoting greater financial inclusion. We should ensure that their hard-earned money and support will reach their families back home, no matter where they are in the world,” Salo said in a news release on Friday.

“The economic contribution of Overseas Filipinos is immense, and it is high time we provide them with the banking solutions they deserve. This measure will not only secure a stable financial future for OFs and their families but also pave the way for a more inclusive and sustainable digital banking landscape.”

Since 2020, the Land Bank of the Philippines (LBP) has led the creation of OFBank, a digital-only, branchless bank designed for overseas Filipinos.

While it has made progress, further improvements are needed to fully meet the financial needs of overseas Filipino workers (OFWs), Returning Overseas Filipinos (ROFs), dual citizens, and other Filipino expats.

The bill strengthens the bank’s services by providing affordable remittance options, accessible credit, and banking products tailored for Overseas Filipinos. It also sets a capital stock of ten billion pesos, with at least half reserved for Overseas Filipinos and their families.

“It’s crucial that we harness the power of digital banking to provide Overseas Filipinos with seamless, secure financial services while promoting greater financial inclusion. We should ensure that their hard-earned money and support will reach their families back home, no matter where they are in the world,” Rep. Salo explained further.

“While it has made progress, further improvements are needed to fully meet the financial needs of OFWs, Returning Overseas Filipinos (ROFs), dual citizens, and other Filipino expats,” he added.

HB 11424 strengthens the bank’s services by providing affordable remittance options, accessible credit, and banking products tailored for OFs.

It also sets a capital stock of ten billion pesos, with at least half reserved for OFs and their families.

In addition to enhanced banking services, the revised Charter ensures that OFBank’s income will fund welfare and reintegration programs.

This reinforces the government’s commitment to the financial stability and well-being of Overseas Filipinos.

“By passing the Overseas Filipino Bank Act, we are not just improving banking services; we are empowering the lives of millions of overseas Filipinos. This is our way of giving back to those who have sacrificed so much, ensuring they have the tools to build a brighter, more secure future — for themselves and for their families,” Salo said.