Setting up an OFW Bank from start to finish is not just like opening your own savings account, opening a new bank is a long process that requires your strong commitment, hard work, patience and tenacity because there are many concerns to put your mind and heart on. It may not be an easy task but we can do it, more so if a great number of OFWs are committed to this dream. And once we have succeeded, the economic and financial benefits are endless.
THE P2.4B HURDLE
The first thing that we need to consider is do we really have that much money to put up an OFW Bank? The bank that we envision here is not just a rural bank which requires only around P30M cash capital to put up, but what we are looking at here is a commercial bank like BDO Private Bank, Bank of Commerce, Chinatrust, Citibank NA Phils., EastWest Bank, Asia United Bank, Robinsons Bank and many others.
The minimum capital requirement for this type of banking license is P2.4B in cash, on top of the required cash outlay for the capital assets like the main office and its branches, the office equipments and furniture, computers and licensed software, etc. and the necessary operating capital to cover salaries and wages, utilities, advertising, etc. Let’s just say we need another P600M for those things depending on the number of strategic branches that we plan to put up. If that’s the case, the total cash requirement will be P3B (P2.4B required by BSP + P600M for capex & opex - capital expenses and operating expenses). See the related article about the minimum capital requirements for banks.
IT'S ACTUALLY A P3B HURDLE...WHAT?!
Please don't get discouraged, just read on please. I understand how you feel. It might help if you can just get a sip of drinking water and make 5 deep sighs and you will be alright. And keep reading, it's not your time to quit.
I can imagine some folks wrenching already about the P3B amount, and I can almost already hear people reacting like “Naku ang laki pala” or “Naku mabigat pala” or the worst is “Naku ang hirap pala niyan”. These are the most common reactions of people, or I should say common initial reactions, to qualify that statement. Probably that was your reaction too when somebody invited you to work abroad, especially when the workload was being described to you, plus the thought of being alone and away from your family for years. Malamang sabi mo rin noon “Naku ang hirap pala!”. Oo mahirap talaga. But please read on. Don’t just give up yet, intro pa lang po ito mga mahal kong Kababayan. Read on….
But what made you decide to work overseas? What made you overcome the hardships? It’s not the financial hardships at home. What really made you decide to become an OFW is the dream for a better life and financial freedom! You are after of the rewards and financial returns in working overseas. Same with the OFW BANK. Once it is up and operating and raking in profits, you will just be waiting for your financial dividends being the co-owner of that big bank, while you are out there leisurely cultivating your orchid farm in the province or maybe checking with your forwarder if your orchids for export to Australia are shipped on time.
HOW DO WE RAISE THE P2.4B...or P3B
How do we overcome the first hurdle of P2.4B cash capital? Because we cannot get a commercial banking license without that minimum amount. That P2.4B is a whooping big amount and your old small house back home may not have enough room to contain that money, ganun po kalaki yung perang yan. How much more if it’s in P100 bills mas lalong di napo magkasya sa dating bahay nyo.
The P2.4B is big but when you adjust your perspective, that amount becomes small - very small. Let me help you see it the way I see it. Would you believe that the P2.4B amount can be raised in a month? “Owwws?!” “Hmmm…Yabang!” I can almost hear some of those comments. But are you ready for a surprise?
That P2.4B is no hurdle at all because we can raise the Fund in a month in just like a flick of a finger! If all OFWs who now number around 1.3M, whether poorly paid or well paid, well off or not, will invest just P1,850 to this Fund this January then we will have P2.405B already! You do not need to be a nurse or doctor or engineer working overseas to become co-owner of this Bank!
Now that makes you excited. If we include the opex and capex amount you just have to increase your single investment from P1,850 to P2,300. That’s just chicken! (Translation: “Barya lang po yan!”).
Now that makes you excited. If we include the opex and capex amount you just have to increase your single investment from P1,850 to P2,300. That’s just chicken! (Translation: “Barya lang po yan!”).
With that simple illustration, we can even put up one commercial bank with that big capitalization per month hahahaha. Anong sinabi ni Ayala, ni Sy, ni Cojuangco, ni Ty. They can’t compete with us because they can not raise fresh capital of P3B in just like that in a month! If they are reading this they must be shaking to their nerves because they know we are a formidable competitor, because they know our OFW Bank will siphon off almost all financial transactions of OFWs. Also check another article here for other creative ideas to raise the capitalization.
LET'S GET EXCITED
And how about the potential volume of our regular deposits. Let me help you see it. If all OFWs, around 1.3M of them and not counting yet their spouse, their sons and daughters, will patronize the services of this OFW BANK and let’s just assume they will save just P1,000 per month and deposit it in their regular savings account that translates to P1.3B new cash deposits per month or P15.6B deposits in a year!
That’s why I don’t feel bad about the paltry P1B Loan Facility offered by the Government because we really do not have to depend on government subsidy because we do not need that in the first place if only we know how to maximize our potential and economic influence. Let us move from the “mentality of the poor” mindset to the “mentality of the rich” mindset.
I think that’s enough for now and let us have time to digest that. At least what we have established today is that the capital requirement for setting up an OFW BANK is not an issue. That’s just the amount you spent in that nice restaurant where you dined last weekend with your family or friends.
Mabuhay Po Kayo. Kayang-kaya po natin yan!
MORE ARTICLES WORTH READING:
MORE ARTICLES WORTH READING:
Sige sali kami jan...count me in kayang-kaya ko yan
ReplyDeletei support this idea, sali rin ako jan but the big question is who will handle that money malaki yan baka itakbo bigla paano na sino ang mananagot dahil siyempre dugo at pawis pa rin namin yan kahit ba naman 2,300 lang yan! - Geobert frm canada
ReplyDeleteGinoong pilipino, mabuhay po! just to let you know that i received your email just this morning and as you said i am Deeply EXCITED already!! My plan is to print some tid bits of what we have discussed on the gma7 thread about the government's 1bn loan, and hopely get it stirred up on a discussion and praying to convince many to get on board with us for support about this plan. I'll keep you posted!
ReplyDeleteAurelio
Thanks sir Aurelio for your unselfish efforts, yes we have enough reasons to get excited. I also want to copy your idea of holding gatherings this Christmas and use them as an opportunity to inspire discussions and generate interests and support and commitment to this worthy pursuit.
ReplyDeleteYou can copy and print and use in whatever way the contents herein as they are meant for public consumption, and our goal here is to see the fruition of this endeavor. Thank you po for dropping by.
Anonymous: Salamat po sa pakikiisa nyo po sa ganitong layunin, magtulungan po tayong maipaalam sa ibang mga kababayan po natin ang ganitong layunin upang maging kabahagi din po sila sa mga biyayang dulot nito.
ReplyDeleteAnonymous (Geobert of Canada): Thanks for dropping by and voicing your honest concerns. Regarding your question about who will handle that money and who will be accountable for that - we shall get people known for their integrity as already discussed in another article here (http://ofwbankincubator.blogspot.com/2010/12/creative-business-ideas-and-reactions.html), you can check it from the list below or from the archive here. Salamat po sa inyong pagdalaw dito and pls check for some updates from time to time.
Ginoong Pilipino, count me in. I am a President of an organization here in UAE, and I will encourage all of them to join and invest in OFWBank to make it big bigger than any commercial bank in the country. Imagine if all OFW sending money thru our bank, we can see a bright future for all OFW. More power for an excellent ideas. (Ernie of UAE)
ReplyDeleteThanks Ernie for supporting this idea and for enjoining others there in UAE and elsewhere to pursue this idea of putting up an OFW Commercial Bank. Your being in that position of influence in UAE in such an opportune time as this is no accident, you are there for a reason - and this could be part of that!
ReplyDeleteThose of us who are committed to this idea can already save as much para pag ready for take off na then it will be very easy for us to raise the Fund. Kanya-kanyang tabi po muna tayo ng kanya-kanyang kayang halaga, big or small, bilang paghahanda po natin para sa katuparan po ng ganitong mga mithiin. Mabuhay po Kayo!
that's a very bright idea. please count me in. i'll tell my friends about this good news. (ms. E from brunei)
ReplyDeleteThanks ms. E from brunei for the support to this effort, magtulungan po tayo at magtatagumpay po itong hangaring ito. Let's spread the good news to all OFWs and encourage them to be prepared for this opportunity to make the OFWs to become an economic powerhouse, collectively.
ReplyDeleteMabuhay po kayo ms. E.
That's a noble and good idea,Pls count me in. Hope this OFW Bank will be established soon,we can channel all our remitances on these Bank and transfer all our accounts from other Banks.
ReplyDeleteYes that's our common dream Gaddy of UAE, and thank you for your support. Your comments keep me fired up. Let's keep others informed of this effort and enjoin them to be part of this one big thing that we dream to accomplish the soonest in our lifetime. This will be a big economic legacy for our children, so that even the most lowly paid OFW can beam with great pride to his kids when they pass by one of those branches of this OFW Bank and with great sense of personal accomplishment masabi nya that I have worked hard as an OFW to become part owner of that BIG BANK.
ReplyDeleteYou may click on the SHARE IT page for you to have an idea which part of the globe got wind of this already.
i like this idea count me in hope this will materialise!!!
ReplyDeleteyes i like this idea....sana mag materialize ito..count me in
ReplyDeleteyes this is a great idea!! count me in jojo c. from qatar
ReplyDeletesana mas mabilis nating maitayo ang OFWBank... tapos gawa rin tayo ng foundation para sa OFW na kailangan ang tulong.
ReplyDeletecount me in..
To 2 Anonymous, mojo and jojo of qatar:
ReplyDeleteThank you for all the support, mas lalo po akong na-encourage na isulong lalo ang ating mga layuning katulad nito. An OFW Foundation will be the natural offshoot once this OFW Bank is making money because we can use say 10% of its taxable income as donation to OFW Foundation, it is one of the many creative yet perfectly legal ways to reduce your taxable income. The result will be lumiit ang tax na babayaran natin sa govt dahil bahagi ng kinita ng bangko ay ginamit po deretso doon sa OFW Foundation upang maalalayan ang iba po nating OFW na nasa panahon ng pagkalinga instead of waiting for govt help that can take time because of the necessary bureaucratic processes. Tjhat's a very good suggestion at Mabuhay po kayo!
Sali ako dito...kailan uumpisahan ito...dapat sa mas madaling panahon umpisahan na ito....mukhang maganda ang layunin ninyo...sana before mag umpisa malaman yong sistema papano tayo kikita dito...Romy Garcia from Khafji.
ReplyDeleteThank you Pilipino for initiating this website. Let us encourage the every OFW to this idea. I am always dreaming the Bank for OFWs to happened someday! This is the only way we can uplift the lives of every OFWs. I think all of OFWs are very interested to this idea, our only problem how we can reach everybody.
ReplyDeleteI guess you have knowledge in accounting and IT technology. I am a Mechanical Engineer by profession.
I think our next step is to make a website dedicated to set-up the OFW Bank. Where members can be automatically be a member (just like a Facebook).., May be we can start a memberships and donations...We be able to register to NEDA or any other required agencies so that any transactions be legalized.
More power to future OFW Bank.
very good idea.i'm looking for this big oppurtunity to push through. i pray that all OFW'S will contribute this noble idea for us to uplift our lives.i hope this will move sooner.
ReplyDeletecount me in
To Romy Garcia of Khafji: we are still in the process of drawing up the business plan and the marketing plan which will be uploaded here for comments and inputs. With it you will also see your income potential as owner of the bank and opportunities for growth.
ReplyDeleteWe are also in the process of scouting excellent banking executives who are fit to run the banking, trust, money market, marketing, asset management and investing operations of the OFW Bank. And also the trusted men and women who will be the members of the Board of Trustees. We shall post here any developments on these areas.
To Mr_john_johnes: Hopefully those of us who are fully convinced of these ideas will spread this by word of mouth, emails or post the articles on your Facebook and other networking sites and through other creative ways without spending a dime. We will still be able to reach that critical mass of OFWs enough to start.
The membership process will be taken cared of later on. As with regards to donations medyo allergic po ako doon kasi pera na po yan. As much as possible let's make use of the free internet medium to connect and share para po di magastos. Malay natin magugulat na lang tayo when GMA 7 will help us formally launch this effort on free TV. At this point I would rather encourage everybody to just save muna at least P1,000 a month in your own savings accounts in preparation for the call to investors-OFWs.
To Anonymous: Yes we want to make it sooner. So far there are already 556 visitors who dropped by the website as of today. Let's reach out for more.
Hi there! I'm a seaman deck officer. Pls count me in. I'll be watching this blogspot for any updates. I'm ready anytime should this idea push through anytime soon. More power to you Pilipino. Mabuhay po tayong lahat na OFW!
ReplyDeleteKumusta Kabayang deck officer! Thank you for being one with us in this effort, please help make other OFWs aware of this too. Mabuhay po kayo! God bless you po.
ReplyDelete