RCBC opening 21 new branches, 200 ATMs

MANILA, Philippines - Rizal Commercial and Banking Corp. (RCBC) is opening 21 new full-service branches and 200 automated teller machines (ATMs) this year, bringing its consolidated branch network to 434 by the end of the year from the existing 413.

RCBC operates 253 full service branches while RCBC Savings Bank (RSB) manages 142. Microfinance-oriented thrift bank Rizal Microbank operates another 18 branches, located mainly in Southern Luzon and Mindanao.

The Universal bank operates a combined ATM network of 1,168 units, of which 809 are directly managed by RCBC, 357 by RSB, and two by Rizal Microbank.

After the 200 new ATMs have been deployed this year, a total of 439 of RCBC’s ATMs will be offsite or ATM units found outside the branch premises and are often found in shopping malls, corporate or manufacturing site. RSB will likewise deploy 202 offsite ATMs in malls, schools and work sites.

“2014 can best be described as a consumer and middle market-focused year,” Raul Victor B. Tan, RCBC retail banking group head, said.

Majority of the domestic commercial banks reported lower net earnings in 2013, mainly due to lower forex and trading gains. Thus, the focus this year is relying more on non-interest income and a steady revenue flow from consumer lending, and low cost deposits.

RCBC has a client base of 5.1 million of which 1.3 are depositors and another 3.8 million are holders of prepaid cards known as MyWallet.

RCBC MyWallet Card is one of the leading prepaid, stored value cards. Earnings from the sale and regular use of cash cards ends up in fee-based earnings for the bank. It is still a small contributor to the bank’s bottom line, but it opens RCBC to more opportunities.

The co-branding and partnerships, for example with Mercury Drug Stores, introduces other banking services and products to the strategic alliances.

The cash card comes in 30 variants or co-branded partners, including Mercury Drug, 7-11 convenience stores, Enchanted Kingdom, and forwarding and parcel firm, LBC.

The MyWallet-Mercury Drug co-branded variety has reached 200,000 despite having been introduced to the market this year.

Tan also said that they have already recorded a 70-percent mobile banking penetration rate from its 1.3 million depositors.

That means majority of RCBC depositors prefer to use electronic or mobile banking technology over physically going to the branches.

“It reduces the cost of doing business with branches, it translates into savings in terms of overhead expenses for the bank, and it emphasizes the growing importance of adopting electronic banking practices,” the RCBC executive said.