Security Bank, MUFG remove cross platform transaction costs

Security Bank Corp. and Japan's Mitsubishi UFK Financial Group (MUFG) have signed an agreement to allow their customers to remit money without any additional cost.

In an emailed statement on Wednesday, Security Bank said it signed a memorandum of agreement with MUFG, through banking entity The Bank of Tokyo-Mitsubishi UFJ. Ltd., to formalize the Interbank Fund Management Service (IBFM) between the banks.

"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," the statement said.

MUFG will cover the funding and moving of excess and deficit funds for collections and disbursements, free of remittance costs, under the IBFM.

"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," it added.

Security Bank sold a 20-percent equity stake to MUFG last year, a transaction valued at P36.943 billion or $782 million. — Jon Viktor Cabuenas/VDS, GMA News