No remittance fee in SBC, MUFG correspondence tie-up

Security Bank Corp. (SBC) and Mitsubishi UFJ Financial Group (MUFG) of Japan jointly announced the launch of the Inter­bank Fund Management Service (IBFM).

IBFM is a special correspondent banking arrangement where customers from the two banks can enjoy respective services without having to worry about the remittance costs and numerous transfer instructions.

A memorandum of agreement was signed between SBC and MUFG’s bank­ing entity, The Bank of Tokyo-Mitsubishi UFJ Ltd.

The automated IBFM service enables customers to do online collection and dis­bursement arrangements and instructions directly with SBC.

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 pm. The service is backed by the concept of target balance sweeping, done automatically between the two banks without additional remittance fees to the customer.

It eliminates the burden of numer­ous funds checking intraday.

This facility gives tremendous flexi­bility to MUFG customers to avail of the premium Cash Management Systems (CMS) services of SBC like 24×7 PAS 5 (real time Customs duties payments) and online collection facility called BIPPS (Billing Invoice Presentment and Pay­ment System), while maintaining their global core funds with MUFG.

The launch of IBFM comes soon af­ter the first anniversary of the strategic partnership between MUFG and SBC, in which Japan’s largest bank invested 20 percent in one of the country’s larg­est domestic banks and a leader in digital CMS.

The two banks have since collabo­rated on a series of initiatives, such as a successful business matching session in Manila, where both banks introduced their corporate clients to each other.