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Home Development Mutual Fund, more commonly known as the Pag-IBIG Fund, yesterday signed an agreement with the Ayala-controlled Bank of the Philippine Islands to accept the government agency’s monthly remittances estimated at P4 billion.

Pag-IBIG Fund president and chief executive officer Miro Quimbo said the
agreement would help bring down the fund’s cost of servicing its seven million members and improve its reach.

Pag-IBIG Fund has 45 branches nationwide compared with close to 900 and over 2,750 automated teller machines of BPI across the Philippines.

Quimbo said the remittance agreement would allow employers to remit employee contributions and loan payments via the Internet and result in a more accurate and faster recording of contributions at close to real time.

Quimbo said Pag-IBIG Fund had a similar arrangement with Union Bank of the Philippines.

“There will be cost savings,” Quimbo said.

Employers usually remit contributions to the fund monthly. The traffic of messengers remitting to the fund has entailed additional costs as it required a bigger office space to handle the transactions. As the volume of business increases, bigger and more offices will be needed unless other solutions are found.

By Eileen A. Mencias

Published: Manila Standard
                  Feb. 20, 2008