RCBC ramps up overseas expansion

MANILA, Philippines — Rizal Commercial Banking Corp. (RCBC) is further expanding its overseas footprint to take advantage of the resilient remittances from overseas Filipino workers (OFWs).

The Yuchengco-led bank is entering into more partnerships in France, Jordan and North America to make remittances more convenient for OFWs.

Alvin Perez, head of retail cash management segment at RCBC, said the bank is ramping up efforts to grow its remittance business through partnership-building initiatives.

“We see more potential for growth through an expanded base which would give more flexibility for our fellow Filipinos to send money anywhere. We are currently finalizing our setup in both Taiwan and Spain, and are looking forward to being present in more countries soon,” Perez said.

He said RCBC has also reached out to potential partners in Singapore, Vietnam, Australia, New Zealand, Germany and other countries in Europe.

Telemoney, RCBC’s remittance service, is present in 16 countries: Canada, United Kingdom, Greece, United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman, Israel, Qatar, Guam, Japan, Malaysia and Hong Kong.

RCBC has also initiated discussions on partnering with digital-first global remittance companies.

In terms of remittance, Telemoney grew its transaction count by 39 percent versus the same period last year, resulting in a 12-percent growth in fee revenue.

According to Perez, Telemoney is also planning to launch “more characterized and incentivized” offerings per country.

“We are strengthening the current propositions of the Telemoney OFW savings accounts, as well as offering preferred rates for house and auto loans for said OFW account holders. We are continuously improving our services so that we can provide added value in the banking experience of our overseas Filipinos,” he said.

Telemoney aims to provide more competitive fees, more relevant products, and more value-adding propositions through an OFW-centric approach. Part of this approach is mapping an insurance offering tailored for Filipinos working abroad.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that personal remittances went up by three percent to $17.59 billion from January to June compared to $17.09 billion in the same period last year.

Of the total during the six-month period, cash remittances coursed through banks grew by 2.9 percent to $15.79 billion from $15.35 billion in the same period last year.

According to the BSP, the growth in cash remittances from the US, Singapore and United Arab Emirates contributed mainly to the increase in remittances in the first half.

For 2023, the BSP has lowered the growth target for both personal and cash remittances to only three percent.