RCBC seen lending to 12 million clients over five years

Rizal Commercial Banking Corp. (RCBC) anticipates robust growth in its retail lending business that should help it achieve its goal of having 12 million clients five years forward. RCBC First Vice President, Retail Banking Group and Product and Sales Support Division Head Emmanuel Mari Valdes said its retail lending business, while only two years old, extends loans worth Php1 million to Php5 million to clients.

“The retail lending proposition of the bank, called Rizal Biz, is a key proposition we have, and should help attract new customers and create new opportunities for the bank to attain it's vision. 
He also said RCBC President Lorenzo Tan targets acquiring 12 million clients over the next five years."

The bank currently has 7 million clients. The Rizal Biz is focused on serving the unserved and underserved markets in the countryside. The service is aimed mostly at retailers or those who own a beauty parlor or who operate junkshops, hardware stores, handicraft and bag manufacturers.

The service has already attracted 250 clients so far and the number is picking up, mostly in the provincial areas. As retailer, it extends loans averaging Php2 million to Php3 million.

RCBC Senior Vice President Matias Paloso said the retail loan portfolio totaled P300 million as of September which surpassed its Php250-million target for the year.

Because this came from a low base, Paloso projects a 30-percent growth in retail business which he considers very conservative.

He said they require proper documentation and collateral such as a house and lot and the business itself.

“It’s hard to manage small businesses. We require collateral. So far, we do not have past dues, and we do not encounter problems. We have no approval to engage in moveable collaterals. We don’t have chattel,” he added.

Meanwhile, RCBC has deployed the Touch Q Lobby Management System, which is a self-service teller assist kiosk in six branches.

It allocated Php60 million for the 100 units that will be deployed in 50 branches with the biggest foot traffic.

The target is to deploy the 100 units until January 2016.

“With the Touch Q, we can reduce servicing in branch by 30 percent or bring in 60 percent more efficiency or faster customer service,” Valdes said.

-- Business Mirror