RCBC and TrueMoney Team Up to Expand Loan Access of Small and Medium Businesses

There is a new lending option that aims to support micro, small, and medium enterprises (MSMEs) in the Philippines, as entrepreneurs continue to struggle to get access to loans. Through its team-up with financial technology solutions provider TrueMoney, the Yuchengco-led Rizal Commercial Banking Corporation (RCBC) is poised to make its loan products more accessible to businesses.

“By closing the gap in funding our MSMEs, we support not only the economic growth of the country, but [also] the improvement of quality of life and the availability of decent and dignified jobs,” RCBC executive vice president Lito Villanueva said.

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The partnership enables the 15,000 merchants from TrueMoney’s network to apply for RCBC’s Pasado Loans. That program consists of quick loan products, specifically tailored for people struggling to enter the bank lending ecosystem. TrueMoney’s partner retailers will also now have the chance to use the loans for their businesses, ultimately spurring growth in the economy.

Businesses, specifically those just starting, often get discouraged to seek formal loan solutions in the Philippines due to barriers like strict requirements and high interest rates. Only one-third or about 35 percent of Filipinos believe they have sufficient access to credit and lending products, even as majority (96 percent) consider these loans as key factors in achieving their financial goals, according to global information and insights firm TransUnion.

“With TrueMoney’s scaled-up plan to boost its ecosystem beyond agent business, this collaboration will [revolutionize] credit access by introducing a comprehensive loan origination service to transform local sari-sari stores [and] other MSMEs into [financial powerhouses],” Manuel Cabañero, president and country managing director of TrueMoney Philippines, said.

TrueMoney Philippines offers electronic payment and remittance services to customers through its partner retailers, mostly sari-sari stores nationwide. The local company is an expansion in the country by the Thailand-headquartered fintech brand.

RCBC, on the other hand, is owned by the Yuchengco Group of Companies, one of the oldest and largest conglomerates in Southeast Asia. The financial institution is said to be the fifth largest privately owned universal bank in the Philippines, with over P1.2 trillion in total resources as of December 2023.