RCBC eyes digital banking license to boost profits, official says

Bruce Rodriguez, ABS-CBN News

Posted at Jun 29 2021 04:39 PM | Updated as of Jun 30 2021 10:33 AM

MANILA - Rizal Commercial Banking Corp has plans to apply for a digital banking license, its president and CEO Eugene Acevedo said Tuesday.

"It's something that we've been discussing extensively inside the bank. I cannot say anything further except to say that, yes we have plans for applying for a new digital banking license," Acevedo said in a virtual briefing. 

Digital banks are now recognized by the Bangko Sentral ng Pilipinas under its recently released digital banking framework

So far, the BSP has granted digital banking licenses to the Overseas Filipino (OF) Bank, Tonik Bank and UnoBank.

The country's 8th largest bank in terms of assets recently said the announced investment by Japan's Sumitomo Mitsui Banking Corp worth P4.48 billion could help boost its digital business.

Acevedo said boosting the digital business can help them improve profitability as interest rates remain low due to the health crisis.

"The only way to do that, so far as we've seen, is by using mobile apps as our main factory rate for servicing customers, as our main interface for engaging customers," he said.

RCBC closed 70 branches in 2020 as they saw most of their customers migrate to the bank's online channels.

RCBC said it allocates 8 percent of its gross revenues on IT investments or around P3 billion based on its topline figure in 2020 at P37 billion.

BSP Governor Benjamin Diokno earlier said the central bank is currently reviewing more digital bank license applications. 

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