Philippine Banks Move to Eliminate Digital Transfer Fees

The Bangko Sentral ng Pilipinas (BSP) has indicated that a growing number of banks in the Philippines are likely to eliminate fees for digital fund transfers, following recent initiatives by two major banks, the Bank of the Philippine Islands (BPI) and Rizal Commercial Banking Corp. (RCBC). BSP Governor Eli Remolona Jr. suggested that this trend could gain momentum quickly, stating, "In about two days, we expect more banks to follow." He emphasized the importance of a diverse payment system, comparing it to the necessity of having multiple telephone numbers for effective communication.

RCBC announced that, effective July 4, it would waive InstaPay fees for person-to-person fund transfers conducted through its Pulz and DiskarTech digital banking platforms. Users of the Pulz app will benefit from free InstaPay transfers for transactions of at least ₱100 (approximately $1.80) for up to 30 transactions each month. A ₱10 (about $0.18) fee will apply to transfers below this minimum or once the monthly limit is reached. In contrast, all P2P InstaPay transfers made through RCBC DiskarTech will remain free, with no minimum transaction amount or monthly limit.

“In about two days, we expect more banks to follow.”Eli Remolona Jr., BSP Governor

RCBC President and CEO Reggie Cariaso stated that this initiative reflects the bank's commitment to enhancing the accessibility and affordability of digital banking, aligning with the national push towards cashless transactions. Analysts have noted that this move is a strategic response to BPI's earlier decision to eliminate fees for InstaPay and PESONet transactions starting July 1.

“This initiative reflects the bank’s commitment to making digital banking more accessible and affordable.”Reggie Cariaso, RCBC President and CEO

Jarrod Tin, an equity research analyst at DragonFi Securities, remarked that while RCBC may not be the trendsetter in this case, its decision is strategically sound. He noted that waiving transfer fees could encourage customers to maintain higher balances in their RCBC accounts, potentially boosting both current and savings account deposits. Although RCBC might experience a reduction in fee-based income, the anticipated increase in deposits could support loan growth and enhance the bank's overall financial health.

Manny Ocampo, President and COO of Investment and Capital Corp. of the Philippines, echoed this sentiment, asserting that other banks will likely feel pressure from their clients to eliminate fees for online transfers and payments. The BPI's initiative to waive fees is expected to benefit over 9.5 million users, who previously paid ₱10 (approximately $0.18) per InstaPay transaction and ₱50 (around $0.90) for each PESONet transfer.

“I believe other banks will also feel the pressure from their clients on removing fees for online transfers and payments.”Manny Ocampo, President and COO, Investment and Capital Corp. of the Philippines

BPI President Jose Teodoro Limcaoco articulated that the bank's policy is intended to promote financial inclusion and encourage the use of electronic payments, which aligns with broader national objectives for a cashless economy. The zero-fee policy encompasses transfers made through InstaPay, which allows for real-time fund transfers, and PESONet, the country's batch electronic fund transfer system.