Philippines eyeing Alibaba’s FinTech to trim remittance cost

The Philippine government is planning to partner with Alibaba group’s fintech (financial technology) solutions to help lower remittance costs for overseas Filipino workers (OFW) through mobile devices.

According to the Department of Finance (DOF), the Ant Financial Group, a subsidiary of Alibaba owned by Chinese business magnate Jack Ma, is eager in helping the Philippines bring inclusive fintech services to OFWs.

Finance Secretary Carlos Dominguez III said the Overseas Filipinos Bank based in National Capital Region (NCR) could be the launching area for a low-cost cashless mobile payment system.

“There are over 10 million Filipinos working abroad, Ant Financial’s technology is helpful for them. The technology can help them manage their cash, their earnings wisely,” Dominguez said.

A representative of finance and central bank officials from the country met the Alibaba Group founder in Hangzhou, China last February 1st to negotiate digital innovations that can help empower micro, small and medium enterprises in the Philippines.

The CEO of the Ant Financial Services Group, Eric Jing, said that his fintech company would be more than willing to forge a deal with the Philippine government.

“We are excited to partner with you. Together we can launch a variety of services for the OFWs,” said Jing.

Alibaba’s founder and CEO Jack Ma visited the Philippines last October 25, 2017, where he met President Rodrigo Duterte in Malacañang Palace to talk about bringing in the fintech platforms to strengthen the Philippines’ mobile technology, onlinr banking and e-commerce industry.

Globe Capital Venture Holdings, a wholly-owned unit of Ayala-led Globe Telecom Inc., is scheduled to roll out a much bigger fintech business within this year after closing the deal with Ma’s Ant Financial Services Group.

Ant Financial is the world’s most valuable fintech (financial technology) firm to date. Ant Financial operates Alipay, the world’s largest mobile and online payments platform as well as Yu’e Bao, the world’s largest money-market fund.

Moreover, the fintech company also runs the Sesame Credit credit rating system. In September 2017, the company announced that it will be forming a joint venture with Sir Li Ka-shing’s CK Hutchison Holdings to bring a digital wallet service in Hong Kong.