RCBC intensifies drive for responsible credit card use

CEBU, Philippines — With the high interest of young adults in using credit cards for transactions, Rizal Commercial Banking Corporation (RCBC) is intensifying its campaign for responsible credit card use, especially among the younger generation.

According to RCBC Credit Cards President and Chief Executive Officer (CEO) Arniel B. Ong, Gen Z customers have a similar credit risk to older generations, showing that young adults can manage credit responsibly with the right tools and guidance.

“Delinquencies within this demographic are often due to insufficient cash flows to cover credit card balances. To mitigate this, RCBC continuously refines its credit limit assignments, ensuring that the limits are reasonable and encouraging responsible credit use,” Ong said.

Post-pandemic spending trends show that young adults primarily use credit cards for essential purchases such as groceries, dining, and shopping, with a notable increase in travel-related expenses as travel normalizes.

For young adults, having a credit card offers convenience, security, and the opportunity to build a financial reputation.

RCBC advocates that to build a good credit history, cardholders should keep balances within their capacity to pay-- paying more than the minimum amount due and always on time; utilizing automated channels for recurring bills and credit card payments; and avoiding excessive number of cards to maintain financial simplicity.

Throughout the years, the bank has implemented several initiatives to promote financial literacy and empower young cardholders.  Recognizing that Gen Z is a digital-first population, it has integrated key credit card features into its mobile banking app, RCBC Pulz.

RCBC Pulz includes a spend analyzer tool, Unli Zero and Unli Installment options, and security features such as card activation and lock/unlock. These tools enable young adults to manage their accounts effectively and avoid over-indebtedness or fraud.

The Yuchengco-led bank has published blogs on its website offering practical advice on good credit handling. These articles cover topics such as responsible credit card use, avoiding common mistakes, and understanding the consequences of not paying credit card debts.

RCBC collaborates with the Credit Card Association of the Philippines (CCAP) to educate young adults on financial literacy through workshops and social media campaigns.

These initiatives focus on responsible credit card use, building good credit scores, and identifying scams, Ong said. — (FREEMAN)