Someone who looked like a messenger was standing at the door, shifting his weight from one foot to the other. I glanced irritably at my watch. I was planning to be early for my meeting..
“Ano po yun manong?”
“Nandito po ba si Salve Duplito? Meron padala sa inyo. Pwede pumasok?”
The word “padala” of course got my attention. I couldn’t turn him away, but I couldn’t let him in either.
“Sorry, manong di pwede eh. Mag-isa lang ako dito. Di po ako nagpapapasok ng ibang tao. Kunin ko na lang po sa inyo dyan sa labas.” No, I wasn’t being unkind. We almost got victimized by a gang several years ago.
After which the discussion turned very, very interesting. Mr. Manong turns to me irritably and says, “Eh, pano to, magbibilang ako ng pera dito sa labas? Baka naman kung anong mangyari pag may nakakita sa akin?” His voice was already starting to creep towards the F note.
Apparently, my senior citizen mom again did not heed my advice to go to the bank to send money for my brother in high school. She used a door-to-door service, which apparently rated poor on that word: service.
In my mind, I tell him, “I could feel for you man, I really do, but no dice. Can’t compromise my family’s security.” I ended up saying, “Sorry po.”
His face was turning as red as his very dusty shirt. In the end, he counted the wad of bills in a little corner all the while glancing at me with irritation. I was going to offer him some water, but my patience was running thin. Instead I offered him a freezing litany on poor service and a threat to contact his manager.
Whew. Too bad it had to turn ugly.
Believe me. I knew he was just doing his job. But somewhere, somehow there was a disconnect.
We got $14.7 billion remittances as of last count and I’m sure it can still go higher, but in my book, banks are not nearly doing enough to serve OFWs.
Photo: AFP
PNB has been number one in this business for many, many years, but since the other year, BPI knocked it off its perch. Other banks are raring to get a slice of the pie, indicating that this is good business for our financial system. I think that if they improve their services – and really think out of the box – more Filipinos will trust banks to bring their money home. It would, of course, be nice if they lower their fees some more.
BPI is the most transparent bank when it comes to fees. Their website shows a table of the fees and charges for remittances. I imagine that this would be very useful to OFWs trying to shop around for the best rates.
(That got me thinking, though. Do OFWs look for the best rates or is banking still a “relationship” thing? How do you decide which bank to use for your remittances?)
So far, Citibank’s Money Card is the one that appears to be very convenient and inexpensive, but its $8-per-$1,000-remittance does turn off those who send less than that amount on a regular basis. I haven’t received PNB’s official reply yet on their rates, so maybe there are better options out there. Do let us know.
Why opt for banks? Banks have an image of being unfriendly and unapproachable. Many people believe banks will lend you an umbrella but will take it away when you really need it. So, why give your money to them?
If I still remember my Economics 101, banks make money for the economy by using the country’s collective savings to lend to worthwhile businesses that produce goods and employ people…who save and the cycle begins again. That’s a worthwhile reason, isn’t it?
Banks are also well supervised and regulated, and that at least can give our OFWs some reassurance that their remittance would not used to buy someone else’s brand new cellphone, which is often the case when our beloved overseas workers ask “a good friend” to bring his money home. (padala system).
My thoughts turn back to Mr. Manong as I remember the irritating exchange. I hope next time, my mom will go to the bank instead of the door-to-door delivery.
April 21st, 2008 at 7:17 pm
Hi Raffy, your comments are much appreciated. banks do have to make money or else it won’t be able to “create” more money. but some are just too greedy, don’t you think?
April 18th, 2008 at 2:35 pm
Hi there. Try Moneytrans if you’re in Europe. They only charge 5euro regardless of amount.You can send door-to-door, to a bank account in Pinas too.BTW yes Economics 101 tells us how banks earn by “intermediating” the money of savers to borrowers (loans). If you notice however, the difference between savings account deposit rates and loan rates, it’s too much.Banks earn much this way and normally double-digit growths in gross value added of the financial industry, also in profits. Not contented, banks developed products that are backed by mortgage. To their undoing and being too-smart than the rest of us, we now have the credit crisis brought by the sub-prime mess.
November 21st, 2007 at 10:25 pm
from hongkong i had pnb pangarap acct.
since 2000 but i could not contenue to save because nothing branch here in nova scotia canada.
i was heard from my friend that a lot of branches in toronto but how?
anyway is not really matter
i like pnb coz i can save money i wait that i be back in phils.to withdraw
i really appriciete is very good idea
thanks you so much!
July 18th, 2007 at 12:55 pm
I used a remittance center when I was in Doha and they charged lower for the service that takes longer to reach the recipient account. But it’s only for 3 days and you save half the cost than when your ‘rushing’. Salve, this blog was nice, funny and very helpful.
April 26th, 2007 at 3:16 pm
Our NEDA Regional Office 9 is preparing a Framework on tapping funds for investment in Zamboanga City (initially) for devt. we would like to ask for help if we can request Zamboanguenos overseas Filipinos to help us establish a database. we hope to have info on their whereabouts, associations, etc.
thanks a lot.
March 28th, 2007 at 5:12 pm
thank you to all those who shared your experiences. i have shared your concerns with some of the banks you mentioned. hope they can do something about improving their service and lowering their fees.
Asyong, let’s hope EPCI will think about your idea about remittances’ tie up with their UITFs, wouldnt that be cool??
i think by openly sharing these info, you are greatly helping our other kababayans.
March 26th, 2007 at 3:34 pm
salve,
Fee is fixed S$3.90 no matter what the amount.
March 25th, 2007 at 1:22 pm
In China, sending money home is a bit difficult. My friends used the bank route via Bank of China once to her account in PNB, she paid a service charge here and PNB deducted a service charge on her account as well.
I usually use Western Union as all remittances here in China are in USD even through the banks. The good thing about Western Union is u can get it in USD as well so u don’t lose on the exchange rate.
Downside is the service fee is quite high.
$100-500 = $15
$501-1000 = $20
$1001-2000 = $25
I heard they have Metrobank here in Beijing but I haven’t seen their rep here during the embassy affairs. They said it’s cheaper but I’m not sure if it will be in USD or PhP. If it will come out in PhP then I’m sure i’ll lose something due to the fluctuating exchange rate.
March 25th, 2007 at 10:19 am
Hi. Here in Kaohsiung (Taiwan), the remittance center is more popularly used than banks. Firstly because of the rates & the fees. An example is for METROBANK the fees is at NT$300 per transaction while for EEC (remittance center), it’s NT$250 (regular) for metro manila destination & also around NT$300 for the provinces. But EEC also has hooked-up with EquitablePCI (fastcard) where transaction costs is at NT$200 only & my family gets the allowance within 1hr or less. Although in METROBANK receipt of the remittances also is within 1 day but only those with existing METROBANK accounts. Iremit bank recently started their remittance operations here & offers competetive exchanges rate & fees as well. But generally remittance centers offer cheaper fees & a bit higher exchange rates to get more customers.
March 24th, 2007 at 5:41 pm
Hi Jet, I find the exchage rate reason unacceptable and money sent through WU is supposed to be received within minutes. Do they also give the difference if exchage rate is higher? I think it’s CHEATING!!!!
March 24th, 2007 at 5:30 pm
Noel, I am not sure where you are or if you sent your money through an affiliated bank of Equitable. Did you send it via remittance centers or via wire transfer? What I said is based from experience and if the money is sent through affiliated exchages here in Qatar, like what I do. My brother also sends $ through Equitable and there’s no charge.
I used to send it in Metrobank and they charge $4 for crediting it to my account and I have also tried PNB because accordingly there’s no charge but I was charge $5. You have to shop for the best deals - it varies from country to country.
March 23rd, 2007 at 11:48 pm
hi alex, are these padala centers safe?
March 23rd, 2007 at 11:45 pm
hi Jayson, wow thanks for sharing that info. Im sure a lot of other OFWs would like to know which deal is best. How cheaper are these rates?
March 23rd, 2007 at 7:53 pm
Nina knows a lot of ways in sending money back home and I couldn’t agree more about Equi-PCi bank, unlike with wire transfer where charges depends on the amount to be transfered, in EPCB fee is fixed. I only hope that EPCB could create a program where an amount of our remittance can be auto deduct and used for their UITF ala SSS style di ba?
March 23rd, 2007 at 4:22 pm
If it’s really an emergency, I can trust Western Union for the fastest and most efficient service. But of course, you always have to pay the price for that kind of service in terms of big service charge…I have tried Citibank’s, LBC and Johnny Air. Lately, I have been banking with Wells Fargo here in CA for my foreign remittances. They have the lowest service charge of $5 and it’s real-time. But they say xoom.com charges a lower fee of $3.50, I haven’t tried it yet though…
March 23rd, 2007 at 3:42 pm
Here in Singapore, I use a Singapore bank to send money home. This is because my payroll is in that bank and their fees are fixed cheaper than Philippine Banks. It’s even more expensive to do a money transfer between Singapore banks.
March 23rd, 2007 at 11:58 am
I’m working here in Toronto, Canada. When I was a newcomer here I sent my remittance thru PNB for few months. But i find out thru my new friends here that its best to send it thru other remittance centers as the exchange rate is higher and the service charge is lower compared to PNB (Others only charged C$12/trans. while PNB is C$16/trans). My friends gave me a lists of legitimate remittance centers so i shopped around to find out which one offers the best rate for my hard earned money. I had maintained one remittance center since then as they always have higher exchange rate from the rest. I’d like to send it thru PNB but how can i be encouraged if don’t get the best value for my money, right?
March 23rd, 2007 at 10:04 am
Western Union, though quite efficient is indeed a highway robber. What they actually do is they charge both ways, taking advantage of variable exchange rates. For example, while a payout of PhP10,000 is confirmed on the remittance sheet, the beneficiary will most likely receive a reduced amount… WU’s reason: fluctuating exchange rate.
March 23rd, 2007 at 9:49 am
Western Union is so expensive no one really use it here (Taiwan). Almost every OFWs use padala center where you have option to send it thru bank or door to door. A padala center usually sell also filipino products or grocery. And they always have give aways for every padala and raffle ticket. Yes, you can also send thru cebuana if you like it faster.
March 23rd, 2007 at 12:50 am
I beg to disagree with Nina. I have sent some good amount to my $ account in PCI Bank but to my dismay, the charge reflected in my statement (PCI) is even higher than the fee i paid in sending the money. I inquired PCI and I was informed about the charges for $ remittances.
March 22nd, 2007 at 7:23 pm
hi nina, i kinda get the feeling that banks are becoming “too” naughty (wagging finger). Also, can you believe how much Western Union is charging? That’s terrible for our OFWs. I discovered last December only that Cebuana Lhuiller has entered the business of domestic money transfer, but their rates are exorbitant too.
March 22nd, 2007 at 7:05 pm
It’s never real time - at least from my experience - that is why Western Union promotes itself as the fastest way to send money (but expensive). I think it goes through some clearing process and the money is usually deposited to the head office first before it goes to the branch. So those in the provinces has to wait for one more day or two. My friend before was forced to open an account in PNB Main (Escolta) to shorten the process. Matagal kasi pag sa branch and exchage rates difference is up to P1 if the account is peso so she also opened a dolalr account.
Banks are naughty too…they credit the money after banking hours so if you have a passbook, you’ll get it the next day!
March 22nd, 2007 at 6:04 pm
nina, thanks for sharing your thoughts on remittances. I particularly appreciate the figures on fees and charges so that other Filipinos can get ideas about other options out there. I am surprised that some banks’ remittance service are not real-time. That means they can still play the money in the overnight market during that “floating” period. Hmm. I hope bank customers are not paying for the cost of banks’ inefficiencies. I think though that it would be good for beneficiaries to have an account themselves so that they get the habit of thinking about saving money.
March 22nd, 2007 at 5:36 pm
I think options for remittances vary from country to country. Here in Qatar, I sent money through a remittance center. They give good rates for $ to peso remittances - 0.25-0.40 centavos lower than the current published rates. There is an option to send it in any bank account in the Phils or through door to door or have it collected from Equitable PCI branches (possible even if the beneficiary has no account in Equitable - it’s called advice and pay). The fee is 15 Qatari Riyas ($1 = 3.645 Riyals) for every transaction (I belive regardless of amount though I haven’t really tried sending more than $2000 in one trxn).
They are affiliated with different banks but the fastest is if you send it to an Equitable PCI account. It takes maximum 24 hours (other banks takes up to 3 days, Metrobank is worse - there was a time it took a week) to credit the remittance to the beneficiary. My best experience was after two hours the money was credited to my Equitable account in the Phils. In cases of emergency, for an extra fee (it used to be 35 Riyals), the money can be collected from any Equitable-PCI branch within 30 minutes (advice and pay). Normally, Equitable (I think other banks too) does not deduct any fees for crediting PESO remittances in the beneficiary’s account - so if I send P10,000 the beneficiary will receive P10,000. But for DOLLAR remittance banks deduct $4-6 except if you send it to Equitable - they do not deduct any fees even if it is sent in Dollar denomination.
Another thing….what so good about equitable, is they have special accounts for OFW beneficiaries, which has lower maintaining balance and the beneficiary does not need to open an account to receive money. Another option for the sender is to instruct Equitable to open an account for the beneficiary so that next remittances will be credited to that account. OFWs here can also open peso and dollar savings account in the Philippines (again in Equitable) and can be withdrawn only in the Philippines, which is a good option for saving money.
However, my husband advised me that if it’s a huge sum of money, wire transfer through a bank here is safer (but cost is 70 Qatari Riyals plus other fees dedcuted by the receving bank) though I haven’t tried it yet as I don’t have that big amount to send =)