Philippine lender RCBC to set up digital bank after SMBC investment

Lender aims to 'radically' cut costs as fintech startups mount challenge

Rizal Commercial Banking Corp., the Philippines' sixth-biggest private lender, says it is going digital to "radically" cut costs. © Reuters

CLIFF VENZON, Nikkei staff writer

June 29, 2021 16:04 JST

MANILA -- Philippine lender Rizal Commercial Banking Corp. plans to set up a digital banking arm and ramp up tech investments after securing $93.9 million in fresh capital from Japan's Sumitomo Mitsui Banking Corp.

The move comes as traditional lenders like RCBC face rising competition from nimble, digital-savvy startups that are launching mobile-based financial services with the backing of Philippine regulators.