The credit card arm of Rizal Commercial Banking Corp. (RCBC) sees sustained growth in the business for the rest of the year buoyed by strong e-commerce spending.
RCBC Bankard Services Corp. president and chief executive officer Arniel Vincent Ong said cardholders continue to spend for essentials utilizing e-commerce or online transactions, installment packages, and cash loans.
Ong admitted that prolonged lockdowns could lead to increased unemployment and reduction in income, which will then affect some customers’ ability to pay their dues.
“Despite the challenges, we see opportunities in key areas of spend where customer demand is shifting to — essentials, e-commerce or online transactions, installments and cash loans,” he said.
Increased spending through e-commerce has been the trend in the first six months of 2021, and the bank executive sees sustained growth for the rest of year as more customers become confident and find the convenience of purchasing things online.
“Our bills payment volumes via the RCBC Online Banking app have grown 2.5x year on year,” he noted.
Likewise, cardholders are now embracing installment purchases to enable them to spread out payments for big-ticket purchases while managing cash flows better.
During the first half of this year, the card issuer saw some signs of recovery in terms of its credit card business.
RCBC Bankard issued 82,000 new cards, up 44 percent compared to the same period in 2020. Usage of plastic money increased to P26.4 billion, 19 percent higher than same period last year.
Ong said both have been contributing to rising healthy or current balances in the bank’s portfolio, something that is important as RCBC Bankard continues to manage the business under the current environment.
