February 3, 2023

A bank executive said going fully digital is not the best solution right now in addressing customers’ needs, citing the need to educate clients first so that they can fully benefit from technological innovation.

In a virtual briefing, Rizal Commercial Banking Corporation (RCBC) Chief Executive Officer Eugene Acevedo said he considers the incoming digital banks and telecommunication companies (telcos) as competitors in catering to customers’ payment transaction requirements.

He said telcos, for one, have customer base that uses the companies’ payment service capabilities.

Digital banks that are applying for license with the Bangko Sentral ng Pilipinas (BSP) are also required to have a P1 billion capitalization, which makes them financially strong to improve on other capabilities.

Acevedo, however, said most Filipino consumers still look for bank branches whenever they have issues with their accounts.

“They have that psychological bridge that they need to cross. A fully digital bank, at this point, is not yet a feasible solution. They need to close that psychological bridge,” he said.

Acevedo said RCBC also does not need to cross the said psychological bridge.

“We already are trusted to hold customers money. We have branches that give them a big sense of comfort,” he said.

Acevedo said they are keeping their branches but are also maximizing mobile channels to fully cater their clients’ needs.

He said they are also strengthening their workforce as well as their consumer education programs on the use of mobile channels so that their clients do not need to go to branches to do their financial transactions.

“We need to do better. We need to feel what the customers are feeling. We continue listening to our customers and keep improving on what we have,” he added. – PNA