RCBC Targets 500,000 New Clients Through Taptap Send Remittance Deal – Fintech News Philippines

RCBC and Taptap Send Partnership Advances Sustainable Development Goals through Digital Remittances

Executive Summary

A strategic partnership has been formed between Rizal Commercial Banking Corp. (RCBC) and mobile money transfer service Taptap Send. The collaboration is designed to enhance digital remittance services for overseas Filipinos, thereby making a direct contribution to several United Nations Sustainable Development Goals (SDGs) by improving financial inclusion and leveraging innovative technology.

Alignment with SDG 10: Reduced Inequalities

The initiative directly addresses SDG Target 10.c, which aims to reduce the transaction costs of migrant remittances. By expanding secure and efficient digital channels, the partnership promotes more cost-effective financial transfers for a significant migrant population.

• Target Corridors: The service focuses on key regions with large Filipino populations, including Australia, the United States, Canada, the United Arab Emirates, the United Kingdom, and Europe.
• Market Context: The partnership is a response to the current market landscape, where digital platforms now facilitate 75% of remittances to the Philippines. Total remittance inflows reached a record US$38.34 billion in the last recorded year, underscoring the importance of efficient systems.
• Cost-Effectiveness: Digital-first solutions inherently lower overhead and transaction fees, increasing the net amount received by families and contributing to the reduction of economic inequalities.

Promoting Financial Inclusion and Economic Empowerment (SDG 1 & SDG 8)

This collaboration represents a significant advancement in financial inclusion, a key enabler for poverty reduction (SDG 1) and decent work and economic growth (SDG 8).

1. Enhanced Accessibility: The partnership makes financial services more accessible to Filipinos abroad and their families. Martin Tirol, RCBC Transaction Banking Group Head, emphasized that the objective is to provide swift, secure, and convenient options for sending money.
2. Support for Financial Aspirations: The initiative equips overseas Filipinos with innovative financial tools to help them achieve their financial aspirations and build long-term plans, directly contributing to household economic stability and poverty alleviation.
3. Economic Contribution: By facilitating a more efficient flow of remittances, the partnership strengthens the economic resilience of local communities and supports sustainable national economic growth.

Leveraging Innovation and Partnerships for Global Goals (SDG 9 & SDG 17)

The agreement exemplifies the principles of building resilient infrastructure (SDG 9) and fostering partnerships to achieve global goals (SDG 17).

• Strategic Partnership (SDG 17): The collaboration between a major financial institution like RCBC, the fifth-largest privately-owned universal bank in the Philippines, and a specialized fintech service like Taptap Send demonstrates a multi-stakeholder approach to achieving development objectives.
• Innovative Infrastructure (SDG 9): RCBC is actively strengthening its digital capabilities and remittance infrastructure to facilitate secure cross-border connectivity, a critical component of modern and resilient financial systems.
• Projected Impact: The bank estimates that opening these new sending corridors will add approximately 500,000 new unique clients, significantly expanding its global reach and its contribution to a robust international financial network.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses a partnership to enhance digital remittance services for overseas Filipinos. This initiative connects to several Sustainable Development Goals (SDGs) focused on economic growth, innovation, reducing inequality, and fostering partnerships.

• SDG 8: Decent Work and Economic Growth: Remittances are a significant source of income for families and a major contributor to the national economy, fostering economic growth.
• SDG 9: Industry, Innovation, and Infrastructure: The article emphasizes the shift to digital platforms and the use of innovative financial tools, which relates to building resilient infrastructure and fostering innovation.
• SDG 10: Reduced Inequalities: By making financial services more accessible and efficient for overseas workers and their families, the initiative helps reduce economic inequalities.
• SDG 17: Partnerships for the Goals: The core of the article is the collaboration between two private entities (RCBC and Taptap Send) to achieve a common development objective, which is the essence of this goal.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s focus on financial access, digital technology, and collaboration, the following specific SDG targets can be identified:

1. SDG 8: Decent Work and Economic Growth

   • Target 8.10: “Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.” The partnership between RCBC, a domestic bank, and Taptap Send directly works to “expand access to… financial services” for overseas Filipinos and their families.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.c: “Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries.” While the Philippines is not an LDC, the principle of increasing access to ICT is central. The article’s focus on “digital channels,” “digital platforms,” and “innovative financial tools” directly supports this target’s aim of leveraging technology for development.

3. SDG 10: Reduced Inequalities

   • Target 10.c: “By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent.” The partnership aims to provide “swift, secure and convenient options for sending money home.” By expanding digital and mobile options, it contributes to creating more efficient remittance corridors, which is a key step toward reducing transaction costs.

4. SDG 17: Partnerships for the Goals

   • Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.” The article is entirely about a private-private partnership between Rizal Commercial Banking Corp. (RCBC) and Taptap Send, exemplifying the type of collaboration needed to achieve the SDGs.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several quantitative and qualitative indicators that can be used to measure progress:

• Total Remittance Inflows: The article states that total inflows reached a “record US$38.34 billion last year.” This figure serves as a baseline indicator for the economic impact of remittances (relevant to SDG 8 and 10).
• Adoption of Digital Platforms: The fact that “digital platforms now handle 75% of remittances to the Philippines” is a direct indicator of progress in financial technology adoption and infrastructure development (relevant to SDG 9).
• Expansion of Client Base: The bank’s estimate that the partnership will “add approximately 500,000 new unique clients to its remittance system” is a clear indicator of increased access to financial services (relevant to SDG 8).
• Geographic Reach of Partnership: The collaboration targets key regions including “Australia, the United States, Canada, the United Arab Emirates, the United Kingdom, and Europe.” The expansion into these corridors is an indicator of the partnership’s scale and effectiveness (relevant to SDG 17).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article. In this table, list the Sustainable Development Goals (SDGs), their corresponding targets, and the specific indicators identified in the article.

Source: fintechnews.ph