TARLAKENYO — State-owned Land Bank of the Philippines (LandBank) eliminated all online fund transfer fees starting Tuesday, July 7, allowing retail clients to send money at no cost via its mobile banking app and iAccess for both InstaPay and PESONet transactions.
The zero-fee policy also extends to Overseas Filipino Bank (OFBank) clients worldwide, aligning with President Ferdinand R. Marcos Jr.’s directive to expand access to affordable and efficient digital financial services for all Filipinos.
“Every peso saved on transfer fees is a peso that Filipino families can spend on their daily needs and that businesses can reinvest in growth. LandBank once again is leading by example, and I hope all financial institutions will continue lowering or removing the cost of digital transactions for every Filipino,” LandBank Chairperson and Finance Secretary Frederick Go said.
LandBank President and CEO Lynette Ortiz emphasized that the move shifts the zero-fee digital framework from government payments to everyday retail transfers.
“By expanding our zero-fee digital framework from government payments to everyday retail transfers, we want to ensure that our banking services directly uplift our workers, small business owners, and overseas Filipinos. Our focus remains on keeping our platforms secure, reliable, and accessible to everyone, helping our clients stay connected to their families and businesses without the burden of extra costs,” Ortiz said.
While LandBank waives its fees, the Bangko Sentral ng Pilipinas (BSP) is taking a stricter stance against commercial lenders that have failed to lower their digital fund transfer fees. The central bank has summoned specific banks to demand justification for transaction charges that regulators say violate new fairness guidelines.
The BSP’s internal assessment evaluated how lenders distribute the costs of information technology systems, fraud management, cybersecurity, and customer support across their networks.
“We invited them to come over for a discussion. I just want to understand why,” BSP Deputy Governor Mamerto E. Tangonan told reporters.
Tangonan questioned why operating expenses are largely passed on to interbank transfers while same-bank, or “on-us” transactions, are often offered for free.
“Our circular says pricing should be fairer and more reasonable,” Tangonan said.
Under the new rules, the BSP expects a more equitable distribution of these costs. Tangonan explained that if a digital platform maintains a P10 fee for transfers to other banks, its internal transfers should reflect a comparable cost basis to be deemed fair.
While institutions like BPI and LandBank have already adjusted their rates, others—including RCBC, Maya, and GCash—are still expected to meet with regulators this week to review their new fee structures.
Despite having a supervisory framework that allows it to penalize non-compliance, Tangonan said the BSP is prioritizing dialogue over sanctions.
“It’s not good to start by punishing them right away. Once we’ve explained it clearly and they still refuse to comply, then that’s a different matter,” Tangonan said.
Addressing concerns regarding potential revenue losses from lower fees, Tangonan noted that banks offer a wide range of diversified financial products, including savings, loans, insurance, bonds, and investments, suggesting they have ample revenue streams beyond transaction fees.
