RIZAL Microbank, the microlending unit of the Rizal Commercial Banking Corp. (RCBC), has expanded its network by setting up more containerized microfinance banking offices (MBOs) in the provinces.
RCBC Retail Banking Group Head Raul Victor Tan said the container vans that were converted as MBOs have reached to 10.
“We have 10 container vans converted into banks. It’s cheaper to build. Most of them are located in Batangas and Mindoro,” he said.
Rizal Microbank was formed after the merger of Merchant Bank and J.P. Laurel Bank in 2011. RCBC acquired the banks in 2008 and 2009, respectively.
“We’re expanding the network. We’re expanding in terms of number of branches of Rizal Microbanks in the countryside. Rizal Bank is focused mainly on providing loans to microentrepreneurs and small businesses,” he said.
There are loans as low as P20,000, he added.
He explained that the objective is to generate loan volume rather than deposits.
“Rizal Microbank has more capital so they need to use up this capital,” he said.
Tan said RCBC group’s consumer loan operation was ranked No. 4 in the banking sector.
Micro-loan programs address the financial requirements of the very poor, whose financing needs are too puny for the large commercial and universal lenders to support given the large overhead costs the big boys along Ayala Avenue incur.