RCBC eyes bigger share in remittances

MANILA, Philippines - The Rizal Commercial Banking Corp. (RCBC) will be increasing its share of the country’s remittance business to over 10-percent by next year, putting greater emphasize on the sea-based overseas Filipinos (OFs) and expanding partnerships in the host countries.

RCBC first senior vice president and Global Transaction Banking Group head Emmanuel T. Narciso said in the fourth quarter alone, personal money transfers from OFs grew by 34 percent.

“We will surpass the 2014 remittance business of $2.3 billion, and it will likely surpass this year’s target of $2.5 billion,” Narciso told reporters yesterday.

RCBC accounts for roughly 10-percent of the remittance business coursed through banks, otherwise known as the formal sector.

Last year, total personal remittances through the formal sector amounted to $24.31 billion, 5.8 percent better than the previous year.

To attain its full year target next year, RCBC will give greater emphasis on increasing its share of the sea-based OF market.

Total contributions of sea-based OFs amounted to $5.6 billion last year, of which RCBC accounted for just under 10-percent.

Narciso said that the bank is expanding its footprint in Cebu and Iloilo, where a large number of seafarers originate outside of Metro Manila.

The business of seafarers is dependent on the relationship with manning agencies that recruit the seafarers. These agencies are located mainly in MM but have outlets in the places of origin.

Thus RCBC places importance not only on retail or individual recruitment but also strategic relationships with the hundreds of manning agencies.

Meanwhile, the biggest market of OFs remittances comes from the Middle East accounting for 35 percent of total contributions. Not surprising, the European market accounted for 32 percent, the Asian market 22 percent, and the North American/Canada market accounts for just 10 percent.

This month, RCBC will formalize a tie-up with Xoom in the US to jumpstart its aggressive return to North Americas.

Partnerships and tie-ups are also the key to extending RCBC’s reach not only to the OFs, but also their beneficiaries.

“RCBC has 2,828 international tie-ups in 20 countries,” Eric C. Buenaflor, senior vice president said.

Locally, the bank has established relationships with major pawnshops, telecommunications companies, to increase its distribution capabilities said to number several thousands of outlets to reach the beneficiaries. These include Palawan Pawnshop, MLhuillier, Cebuana Lhullier, SMART and Globe Telecoms.

The remittance business contributed approximately three to four percent to the bank’s bottomline last year.