RCBC says loans lent to small businesses rose by more than half

Rizal Commercial Banking Corp. (RCBC), one of the Philippines’ biggest lenders, said funds it lent to small businesses have risen by more than half in 20 months. The bank’s lending program for small and medium-scale enterprises (SME) has lent P9 billion to its customers, 63 percent higher than the original amount allotted in March 2008 when the initiative was relaunched. By end-2008, its SME loan portfolio reached P7.5 billion, the lender said in a statement submitted to the Philippine Stock Exchange (PSE). Growth of its small business loans was enabled by “chang[ing] the way SME loans are screened, evaluated, approved, and administered," the bank said. The process involved “bringing in a new team of banking professionals, reviewing and instituting radical changes in traditional banking practices and processes," the bank added, quoting Reynaldo Orsolino, its senior vice president and SME head. New tools and technologies were also introduced, Orsolino added. Launched in April this year, the portal – www.getaloan.com.ph – enabled entrepreneurs to measure their businesses’ eligibility to secure loans by answering online questions for free. In turn, answers earn points, “and those that pass and are interested in getting a loan from RCBC will be invited to proceed with the bank’s application process," the bank said. The web portal also contains useful information and business news, a listing of SME related events (seminars/trainings offered by various government agencies), and other useful tools for businessmen (i.e. updated foreign exchange rate, calendar, loan calculator, links, etc…). To sustain the SME program’s growth, RCBC plans to open two to three lending centers in strategic areas in Metro Manila and in the provinces. The lender will also make more products and services available to its target customers including electronic banking access, basic business solutions, and cash management services, the bank said. RCBC, the Philippines’ fourth largest private universal bank, has opened 14 new branches around the country, bringing the total to 335. From January to September this year, it was able to install 86 additional ATMs, bringing the total to 469. Shares of RCBC shed 25 centavos to P17 pesos during Thursday's trading at the PSE. - GMANews.TV