At Rizal Commercial Banking Corporation (RCBC), the retail banking strategy is not anchored on flashy digital platforms alone. Instead, Richard Lim, head of retail banking, is doubling down on a pragmatic mix of traditional distribution, data science and internal collaboration to deliver growth. “Our model is built for scale,” said Lim. “While other banks may centralise everything under retail, our setup uses the retail bank primarily as a distribution channel for a wide array of products—from loans to bancassurance.” Distribution-led retail growth RCBC’s retail banking group (RBG) operates 439 branches as of 2024, with about 92% reported profitable. The bank’s branch footprint plays a pivotal role in both deposit mobilisation and cross-selling. “We are now pulling down the bank’s overall cost of funds,” Lim noted, citing that cost of funds from RBG deposits is much lower than the bank’s overall average. With a 53% CASA (current account savings account) ratio, RBG is not only contributing deposits but doing so efficiently. RCBC is ranked fifth in total deposits in the Philippines and sixth in CASA as of December 2024. However, it leads the mid-sized pack with the highest compound annual growth rate (CAGR) in deposits among its peers. This momentum is built on what Lim calls the “Holy Grail” of distribution: growing consumer loans through branches. “Other banks rely on developers and car dealers. We focus on referrals through our branch network. That’s our differentiation.” Cross-selling as core strategy Lim is candid about his strategic north star: cross-selling. “Our ambition is to be the best in cross-selling—because that is when we become truly relevant to our customers.” For RCBC, cross-sell includes auto loans, home loans, credit cards, bancassurance and investment products. In an internal structure where consumer lending and insurance are managed by different business units, retail banking serves as the frontline channel. “In other banks, everything falls under retail. At RCBC, we are one of several distribution arms—but one with a growing influence,” Lim explained. This structure is rooted in RCBC’s legacy: it absorbed its former thrift bank subsidiary (RCBC Savings) just four years ago. As a result, the consumer lending group still operates as a distinct manufacturing unit, while retail handles sales and referrals. Data over platform While Lim acknowledges that RCBC is not yet able to do digital straight-through processing for all products, he sees the bank’s use of data science as a competitive edge. “Almost half of our growth outside of branch walk-ins is now driven by our data science generated leads.” RCBC uses algorithmic scoring models—ranging from RFM (recency, frequency, monetary value) to affluent and propensity scores—to power its branch leads dashboard. Relationship officers and branch managers are required to review these daily before engaging customers. “This is how we instill discipline,” said Lim. “We ensure that every outreach—whether acquisition or engagement—is backed by data. It’s not just scattergun prospecting.” Customer experience and collaboration The emphasis on people and process extends to customer experience. RCBC recently earned top ranking in a Philippine Daily Inquirer survey for customer service—an unprompted vote of confidence by readers. Internally, QR-based feedback shows a 99% satisfaction score, particularly among Hexagon Club customers, its affluent segment. Lim also emphasised RCBC’s unique culture of collaboration. “In other banks, business units operate like warlords. Here, we freely refer clients across departments. We created a retail wealth management team under the Wealth group to avoid turf wars and ensure alignment with branch relationship managers.” This collaborative culture is also manifest in RCBC’s financial literacy programme, “Access”, which mandates that product promotions must follow pure education sessions delivered by branch managers. Balancing tradition and transformation RCBC has launched several programmes to deepen client engagement, including the all-in-one “One Account” and SME-focused “Negosyo” account. While 41% of deposit growth comes from new-to-bank clients, Lim is mindful of gaps—particularly the bank’s current inability to fully deliver an omnichannel experience. “There’s still no seamless hand-off between digital and physical,” he admitted. For example, consumer loan applications must still be done at branches, although short-term payday loans are available digitally. Moving forward, Lim sees the integration of technology platforms and APIs (application programming interfaces) as vital. “Today, APIs are treated like a necessary evil. But if we want to move from 700,000 digital customers to one million by 2028, this mindset has to change.” He is optimistic that these structural improvements, coupled with people development anchored on “5Ts” (Train, Tool, Track, Treat, and Threat), will be key enablers for scale. RCBC is also piloting “GAINS,” an AI-driven sales coaching platform, to automate and empower frontliners. The path ahead RCBC’s goal is to break into the top four banks leveraging on retail banking by 2028. The strategy hinges not just on technology, but on disciplined execution across a distributed network. “If we want to hit a million [customers] for the segments of mass affluent and SME’s, we must build everything for scale,” Lim said. “Branch-based distribution, supported by analytics and collaborative culture, is our formula.” As digital-native challengers push into financial services, RCBC is proving that traditional banks—when equipped with the right mindset, structure and tools—can still outgrow the competition.
