Rizal Commercial Banking Corp. (RCBC) is projecting its trade flows to climb to P330 billion by end-2025, banking on strong demand from major corporate clients and a sharp rise in supply chain finance (SCF) activity.

According to Martin Tirol, RCBC Transaction Banking Group head, the lender continues to see “solid momentum” across key industries — including telecommunications, energy, petroleum infrastructure and manufacturing — primarily through its Institutional Banking Group.

Documentary trade remains the core driver of volumes, accounting for 48 percent of total trade transactions, while letters of credit, standby letters of credit and guarantees make up 31 percent. Trade finance contributes another 16 percent, Tirol said.

The biggest boost

However, the biggest boost comes from the bank’s SCF business, which is poised to expand by 342 percent, after gaining traction among both buyers and suppliers who are leveraging earlier payments, extended terms and more efficient cash flow management.

“Buyers, in turn, benefit from extended payment terms, thus improving their working capital. RCBC offers a full suite of SCF solutions to support these needs,” Tirol added.

He attributed the surge in SCF adoption to more customer-friendly documentation, quicker turnaround times, and the deployment of specialized teams providing customized, advisory-driven solutions.

Overall trade and SCF balances

Tirol said he is confident that by year-end, the bank’s overall trade and supply chain finance balances will post double-digit growth. In terms of transaction volume, SCF has already expanded by more than triple year-on-year.

RCBC, currently the country’s fifth-largest privately owned bank, continues to expand its footprint in trade and supply chain financing, offering services that span basic trade payments, guarantees and pre- and post-shipment working capital.