Rizal Microbank lends P1B
MANILA, Philippines - Rizal Microbank, the microfinance unit of Rizal Commercial Banking Corp., has already disbursed a total of P1 billion in micro-loans in just four years in operation.
In the first six months of 2013 alone, it has an outstanding portfolio of P100 million. Total micro-borrowers stood at 12,000.
“The difference is that Rizal Microbank does direct lending unlike other commercial banks in the banking system that rely more on wholesale lending to microfinance institutions (MFIs),†Ma. Lourdes S. Pineda, president of Rizal Microbank, said.
Likewise, it concentrates on the P50,000 to P1 million market segment or mainly microborrowers to small enterprise borrowers.
To support its huge quantitative market, it developed its own integrated core banking system as early as July 2011. These simplified backroom operations as well as kept the operating costs to the minimum.
Likewise, it introduced microinsurance in partnership with Malayan Insurance Co. Inc., the coverage protects the entire amount, plus burial benefits and medical reimbursements.
Presently, Rizal Microbank operates 14 branches, of which 10 are located in Mindanao and four in Luzon. By the end of 2013, Pineda said that they will bring it up to a total 26 branches and micro-banking office (MBO).
The RCBC subsidiary reported total resources of P900 million at the start of the year.
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