Convenience stores, pharmacies can now handle banking transactions

The Bangko Sentral ng Pilipinas (BSP) has further liberalized banks’ deposit servicing by now allowing the services of so-called cash agents.

“Banks are now allowed, with prior BSP authorization, to serve clients through cash agents contracted by banks to accept and disburse cash in its behalf, facilitating online self-service deposits, withdrawals and fund transfers, as well as bills payment,” the BSP said in a statement Wednesday.

The BSP defines cash agents as “typically cash-rich third-party entities with many outlets that conduct regular business in fixed locations anywhere in the country, such as convenience stores, pharmacies and other highly accessible retail outlets.”

According to the BSP, cash agents can also “perform know-your-customer procedures as well as collect and forward application documents for loan and account opening.”

These bank proxies could also sell insurance as long as they get the authority from the Insurance Commission.

“Cash agents enable banks to leverage on innovative digital solutions to serve a wider client base, particularly in the low-income and rural areas where there is limited commercial incentive to establish a full branch or even a micro-banking office. Through this new cost-efficient service channel, serving the currently unbanked and low-income segments can become more viable and sustainable for banks,” the BSP said.

BSP data showed that over 36 percent of the country’s municipalities have no banking institutions and only have non-bank financial institutions such as cooperatives, lending investors and pawnshops.

“The BSP will evaluate the quality and sufficiency of these risk management and control systems before granting authorization to perform banking services outside bank premises,” it said. —BEN O. DE VERA