State-owned Development Bank of the Philippines (DBP) continues to adopt a multi-channel platform for its multiple bulk fund disbursement undertakings to ensure faster, safer, and more convenient fund distribution to beneficiaries.
DBP was recently tapped to serve as financial intermediary in the pension disbursements of the Social Security System (SSS) in order to expedite the crediting of monthly pensions to pensioners’ accounts and eliminate disbursements through checks
DBP President and Chief Executive Officer Emmanuel G. Herbosa said that the adoption of a multi-channel platform has allowed SSS pensioners to claim their money faster and earlier, and in a more convenient manner.
Starting October, SSS regular pensions have been released through DBP’s disbursement facility via the Philippine Electronic Fund Transfer System and Operations Network (PESONet) and DBP-accredited Remittance Transfer Companies (RTCs)/ Cash Payout Outlets (CPOs). Through these disbursement platforms, pensioners may opt to receive their monthly pensions through their accounts in any PESONet participating bank and e-wallet such as PayMaya or cash pick-up arrangement via DBP Cash Padala thru M Lhuillier.
“When DBP handled the first bulk disbursement of SSS pensions to over 2.7-million pensioners last September 30 for the October 1 pension date, our account officers ensured the direct crediting of funds to each and every pensioners’ bank account, whether maintained in a universal, commercial, savings or rural bank,” Herbosa said. “This was made possible through the use of DBP’s PESONet facility, and by close coordination with the said banks to ensure accuracy in pension disbursements.”
SSS’ adoption of this new bulk pension disbursement mode — wherein twice a month pension crediting has also been adopted from the previous crediting of pensions during a pre-determined allotment date — has resulted in earlier receipts of pensions by retired SSS members, as well as more efficient fund disbursements by SSS.
DBP Executive Vice President Fe Susan Z. Prado mentioned that while a multi-channel approach in the disbursement of funds has proven to be a viable platform for fund distribution, it may likewise serve as a model for private-public collaborations, wherein the intrinsic strengths of each of the institutions involved are harnessed and leveraged.
“Through digital banking and broader collaboration with other financial institutions, we intensify our inclusion drive and at the same time we, altogether make our financial services closer to the Filipino people,” Prado added.
Herbosa also bared that DBP adopted a similar approach when it released social amelioration funds under the Small Business Wage Subsidy program to over 3 million marginalized workers affected by the national health emergency.
“DBP also used this large-scale distribution approach in the release of more than P1.485-billion cash assistance to around 297,000 small-scale farmers under the Department of Agriculture’s Rice Farmers Financial Assistance program,” he added.
Herbosa said these disbursement initiatives show how DBP will continue to harness technology and its network of partners to deliver innovative financial services responsive to the requirements of other national government agencies.
“We will continue to leverage on the strengths of automation, financial technology, and our partner ecosystems, and to adopt innovations, to better assist in the delivery of basic social services especially during this national health emergency,” Herbosa added.