Top 5 Fintech Philippines News of the Week (CW 20)by Fintechnews Philippines May 18, 2018
Fintechnews.PH picks every Friday for you the top 5 Fintech Philippines News of the week:
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Here we go:
Traxion to make mini-banks of 600k sari-sari stores
Ireland-based blockchain company Traxion aims to enable 600,000 sari-sari stores (neighborhood variety stores) to somewhat function as mini banks or remittance centers in the Philippines.
Jorge Azurin, co-founder and business strategist of Traxion, said the sari-sari stores will serve as “branches of banks” in far-flung areas as Filipinos can easily deposit and withdraw cash from them.
The partner sari-sari stores will earn money from transaction fees. Transaction amounts are limited, especially in remote areas where P500 and P300 are the average transaction.
Azurin noted internet connection would not be an issue as Traxion would connect its system to the sari-sari stores and allow SMS (short text messaging) to do the transaction. The project is expected to launch this year after the completion of the firm’s initial coin offering in June.
Japan’s MUFG Bank sets global hub in Philippines
Tokyo-based MUFG Bank Ltd has chosen the Philippines to be the site of its Global Services Operations Center (GSOC).
Kanetsugu Mike, president and CEO at MUFG Bank, said the bank’s GSOC in the country would further improve the productivity of its operations in overseas units and at the same time develop an efficient operations platform to support its transaction banking business.
“This is our first centralized operations center covering different countries, and it is aligned with our strategy to strengthen our competitiveness. I wish to underscore our ongoing commitment to the development of this great nation,” he said.
The report added MUFG chose Manila primarily due to its large English-speaking population. The center would initially employ 50 local hires that would gradually be increased to around 300.
Xurpas unveils blockchain project
Listed technology firm Xurpas Inc. has launched its blockchain project to be undertaken by ODX Pte. Ltd., a subsidiary incorporated in Singapore.
ODX will allow consumers in emerging markets to access the internet for free, through sponsored data packages, The Star reported.
ODX plans to sell up to $100 million worth of tokens and currently has initial downpayments on allocations totaling over $50 million.
Proceeds from the sale will be used to build the ODX infrastructure, as well as for business development with internet service providers, publishers and other partners.
Xurpas said in its statement the tokens are not available for sale to citizens or residents of the Philippines, US or China. ODX is the first of several blockchain projects that Xurpas will launch within the year.
Xurpas posted a net loss of 77.93 million in the first quarter, coming from earnings of 103.24 million in the same period last year, due lower revenues, the report added.
Mobi724 launches in Philippines
Canada-based Mobi724 Global Solutions Inc has expanded its card linked offers business in the Philippines called the EMV, a global standard for chip based credit and debit card transactions and it stands for Europay, Mastercard and Visa, a joint effort between these companies.
Mobi724 announced that it started live processing of local EMV payment transactions in the country last May 10, following Mobi724 ‘s disclosure of its Q4 and 2017 fiscal year results on May 1, where the company announced that its card linked offers grew 51 per cent.
Among the company’s plans is to add new competitive solutions which will be announced once the testing and certifications are done, said Mobi724 CEO Marcel Vienneau in an interview with Investing News Network (INN). He expects those to be completed in the next 45-60 days and that the company has potential customers ‘that want to use it.’
RCBC, Japanese banks tie up to assist small business
Osaka-based Kansai Urban Banking Corp. and Kobe-based Minato Bank signed a business alliance agreement with Rizal Commercial Banking Corp., to help small and midsize Japanese firms advance into the Southeast Asian country, the ABS-CBN reported.
All three banks aim to promote business tie-ups between their clients while cooperating in offering Philippine market and investment information and various support such as accounting and tax expertise. RCBC began in 1960 and now has 508 branches across the country on a consolidated basis.