Security Bank Corp. and Bank of Tokyo Mitsubishi UFJ Ltd. have signed a deal to allow their respective customers to conduct certain cross-banking transactions without worrying about the remittance costs and tedious transfer process.
One year after the Japanese banking giant bought 20 percent of Security Bank, the two banks launched Interbank Fund Management Service (IBFM), a special correspondent banking arrangement where customers from the two banks could enjoy their respective services.
In a statement, Security Bank said the automated IBFM service enabled customers to do online collection and disbursement arrangements and instructions directly with Security Bank.
MUFG will take care of funding and moving excess and deficit funds for those collections and disbursements free of remittance costs. Customers will know their end-of-day balances by 5:30 p.m.
The service is backed by the concept of “target balance sweeping,” done automatically between the two banks without additional remittance fees to the customer.
This facility also gives flexibility to Bank of Tokyo customers to avail themselves of Security Bank’s premium cash management system service like real time customs duties payments and online collection facility while maintaining their global core funds with the Japanese bank.—DORIS DUMLAO-ABADILLA