MICROCAPITAL BRIEF: Rizal Microbank of the Philippines Sets Up Eight Mobile Microbusiness Offices (MBOs)

Rizal Microbank, a Philippines-based microfinance subsidiary of Rizal Commercial Banking Corporation (RCBC) that offers microloans, deposits, and microinsurance, reportedly is spending PHP 16,000,000 (USD 367,000) to set up eight mobile microbusiness offices (MBOs) to increase microfinance services in the Philippines [1]. The MBOs, which will be made up of two container vans and run by two bank employees, will allow customers to deposit and withdraw cash and apply for loans without needing to travel to a bank branch [1]. The transactions will be cashless and done through Automated Teller Machines (ATMs) or RCBC’s “My Wallet” debit card [2].

Rizal Microbank currently has 14 branches and has disbursed PHP 800 million (USD 18,300 million) in microfinance loans since its inception in 2009. As of December 2012, RCBC reported total assets of PHP 376 billion (USD 8.7 billion), return on assets of 1.77 percent, return on equity of 13.72 percent and net income of PHP 6.21 billion (USD 143 million).

By Megan McGowan, Research Associate

About Rizal Commercial Banking Corporation (RCBC):

Rizal Commercial Banking Corporation (RCBC) was established in the Philippines in 1960 as Rizal Development Bank. In 1962 it received approval from the Philippine central bank to operate as a commercial bank, and it began operations under its current name in 1963. With its subsidiary, RCBC Savings Bank, RCBC has approximately 340 branches in the Philippines as of 2010. It also offers global remittance services through approximately 160 branches and agents in Asia, Canada, Europe, the Middle East and the United States. As of December 2012, RCBC reported total assets of PHP 376 billion (USD 8.7 billion), return on assets of 1.77 percent, return on equity of 13.72 percent and net income of PHP 6.21 billion (USD 143 million).

Sources and Additional Resources

[1] The Philippine Star: “RCBC Putting Up World’s First Mobile Micro Biz Offices,”http://www.philstar.com/business/2013/09/16/1214541/rcbc-putting-worlds-first-mobile-micro-biz-offices

[2] Rizal Commercial Banking Corporation, http://www.rcbc.com/

Business World Online: “RCBC wants microfinance subsidiaries merged by April,” ?http://www.bworldonline.com/content.php?section=Finance&title=RCBC-wants-microfinance-subsidiaries-merged-by-April&id=43623

MicroCapital.org Story: January 15, 2012: “MICROCAPITAL BRIEF: RCBC of the Philippines to Merge JP Laurel Bank into Rizal Microbank by April,” http://www.microcapital.org/microcapital-brief-rcbc-of-the-philippines-to-merge-jp-laurel-bank-into-rizal-microbank-by-april/

MicroCapital.org Story: February 11, 2011, “MICROCAPITAL BRIEF: Rizal Commercial Banking Corporation (RCBC) of Philippines Raising Capital for Microfinance Acquisitions,” ?http://www.microcapital.org/microcapital-brief-rizal-commercial-banking-corporation-rcbc-of-philippines-raising-capital-for-microfinance-acquisitions/

MicroCapital Universe Profile: RCBC ?http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Rizal+Commercial+Banking+Corporation+%28RCBC%29

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