Rizal Microbank, a microfinance arm of Rizal Commercial Banking Corp. (RCBC) is planning to expand. Currently, the bank has ten branches in Luzon and four in Mindanao. The expansion would focus on Mindanao because they said that Luzon is too saturated already. Microfinance institutions provide financial services to people in poorer areas. In the Philippines, microfinance banks are a new type of banking system that emerged in the Philippines. The plan of Rizal Microbank to expand would greatly help and benefit the less fortunate people especially in Mindanao.
The Mindanao region of the Philippines includes Region 9, 10, 11, 12, 13 and ARMM.
Based from NSCB’s statistical data (first semester of 2012) regarding the state of poverty in the country, Mindanao region is still the poorest region in the Philippines, with poverty incidence ranging from 28-46% (see Table below). Through the expansion of Rizal Microbank in Mindanao, financial services would me more accessible in Mindanao. One important aspect of microfinance is granting loans to these people would be able to have an opportunity to open up a small business. Due to this, there is a possibility that poverty incidence of Mindanao especially if more microfinance banks would eye for Mindanao.
Keren del Rosario