CIMB expands services despite gray list concerns

Despite offering a notably high 15 percent interest rate, Commerce International Merchant Bankers Berhad (CIMB) Philippines remains confident in sustaining this rate through low operational costs.

CIMB Bank Philippines CEO Vijay Manoharan on Wednesday, 16 October stated that they have sustained this rate since they started in 2018, and is expecting increased profitability by next year.

The same day, CIMB also launched its latest initiative, CIMB Kababayan, tailored to cater to overseas Filipino workers (OFWs) which will offer a range of financial services including the ability for OFWs to open accounts even from abroad.

Despite being perceived as a risky market due to irregular income patterns, CIMB highlighted financial literacy as a key component of the program, aiming to help OFWs manage their finances effectively.

Financial literacy key

“This is not only about giving loans, but also teaching OFWs how to save and manage their money effectively,” Manoharan explained.

The bank, which has grown its customer base to 8.5 million depositors, is set to expand its OFW clients by half a million within the next two years.

“We want to be aggressive because there are so many OFWs.”

CIMB’s expansion comes at a time when the Philippines remains on the Financial Action Task Force’s gray list, which flags the country for inadequate anti-money laundering and counter-terrorism financing measures.

Amid gray list concerns, Manoharan stated that OFW remittances have continued to grow steadily.

He emphasized that the bank has implemented strict monitoring to ensure compliance.

“Filipinos are not gray-listed for us. We operate based on Filipino relationships so obviously, there are additional monitoring and screening to ensure,” Manorahan stated.