February 5, 2020 – RCBC is planning to put up a digital bank with a rural banking license, the bank disclosed to the Philippine Stock Exchange recently.
As a pure digital banking business, it will have electronic payment and financial services plus cloud-based core banking licenses from the Bangko Sentral ng Pilipinas (BSP), the Manila Standard reports. RCBC noted this plan is subject to regulatory approval from the BSP and the Securities and Exchange Commission (SEC). Running the new digital bank will be Lito Villanueva, RCBC Executive Vice President and Chief Innovation and Inclusion Officer. Other banks with digital banking licenses in the Philippines include ING, CIMB, and TONIK banks.
As reported by FintechNewsSG, the RCBC Rural Digital bank will allow the universal bank to reach a bigger retail market base.
Banks have been going the digital route for some time now. UnionBank of the Philippines, for example, have set up ARK branches – which are UnionBank branches where users can transact 24/7. UnionBank also now allows bank account registration through their mobile apps.
RCBC was in the news last year for announcing its intention to launch a peso-backed stablecoin on the IBM World Wire. There was no update on its news, however, while UnionBank went on to demonstrate late last year how a peso stablecoin can be used for cross border remittance.
This article is published on BitPinas: RCBC To Put Up Rural Bank Focused on Digital Banking