At the Hungarian-Philippine Roundtable Discussion on Labor Market Trends last July, Hungarian and Filipino executives signed the Memorandum of Understanding for an embedded finance partnership providing a wide range of digital financial services to overseas Filipino workers (OFWs).
Stakeholders are the Rizal Commercial Banking Corporation (RCBC) and Hungary-based fintech Peak Card Services Ltd. (Peak) and Columbus Private Equity Fund (Columbus).
“The unprecedented flow of labour is presenting the world with entirely new circumstances, unfolding a series of opportunities for agile, fast-responding companies, and cross-continental collaborations. One such opportunity is to address the financial challenges of overseas workers,” said Márton Suppan, CEO and founder of Peak Hungary.
RCBC, Peak, and Columbus’ partnership will be a boon to foreign employment agencies, allowing them to incorporate better financial assistance to OFWs such as salary advances, home and car loans, and personal loans. Account holders will also be able to invest more easily, acquire medical insurance, and access other services.
“Financial inclusion should not only be for people who work in our country but it should also include overseas workers who send money back home to build their dreams for their families,” said the bank’s Executive Vice President and Chief Innovation and Inclusion Officer Lito Villanueva.
In the Philippines, where a high percentage of the government’s GDP comes from their foreign workforce, recruitment agencies are monitored by the Philippine Overseas Employment Administration. The office also creates and implements policies endeavouring the best interest of OFWs.
The agreement coincided with RCBC’s 63rd anniversary as well as the 50th anniversary of diplomatic relations between Hungary and the Philippines. While the pilot will kickstart in Hungary, it will eventually expand to other European Union member states and the United Kingdom.
