How RCBC is Powering Philippine Trade Growth Through Supply Chain Finance

Businesses need financial partners that can help them navigate complex supply chains, manage working capital, and keep trade operations running smoothly.

As industries continue to evolve, particularly in telecommunications, energy, and manufacturing, the need for smarter, more agile financing solutions has never been more crucial.

For RCBC, this growing demand is exactly where the bank continues to demonstrate leadership.

By the end of 2025, RCBC expects its trade flows to reach P330 billion, reflecting the expanding needs of institutional clients and the strong performance of its Transaction Banking Group.

The bank is backed not only by sustained client activity, but also by the rising adoption of Supply Chain Finance (SCF)—a solution that has quickly become a strategic cornerstone for both buyers and suppliers.

Understanding the Momentum Behind RCBC’s Trade Growth

RCBC’s positive outlook stems from growth across several trade segments. According to Transaction Banking Group Head Martin Tirol, documentary trade remains the largest driver, accounting for 48% of total trade volumes.

Instruments such as Letters of Credit (LCs), Standby LCs (SBLCs), and guarantees represent another 31%, while trade finance solutions contribute around 16%.

But the real standout story is Supply Chain Finance. SCF currently accounts for a modest share of total trade volume at 4%, yet it is projected to grow by 342% by year-end and continue to grow well in 2025. Exports are expected to expand by double digits as well, another sign that the bank’s trade ecosystem is gaining strength.

This surge is not happening by accident. Across industries, more businesses are turning to SCF to stabilize their supply chains, ease operational pressures, and improve liquidity without disrupting day-to-day operations.

Why Supply Chain Finance is Becoming Essential for Businesses

To fully understand the rise of SCF, it helps to examine how it transforms working capital across both ends of the supply chain.

For suppliers, SCF offers reliable access to early payment at competitive financing rates. Because financing is anchored on the buyer’s credit standing, suppliers benefit from lower cost of funds and stronger cash flow, allowing them to manage production, pay workers, and meet orders with greater confidence.

For buyers, the advantage goes in the opposite, but equally strategic direction. SCF provides longer payment terms without straining supplier relationships. This frees up working capital, giving companies more room to invest in expansion, technology upgrades, or inventory buildup.

As Tirol explains, “SCF has attracted interest as more buyers and sellers recognize its financial and operational benefits. RCBC offers a full suite of SCF solutions to support these needs.”

In other words, SCF is no longer just a financing tool. It is becoming a collaborative solution that strengthens supply chain resilience for entire industries.

The RCBC Advantage: Faster, Client-Centric, Customized Solutions

One of the biggest drivers behind RCBC’s SCF growth is its commitment to simplifying the banking experience for corporate clients. Traditional trade financing has often been associated with heavy paperwork and long processing times, pain points that the bank actively addressed.

Businesses are responding positively to:

• Customer-friendly documentation: RCBC has redesigned documentation workflows to be clearer, more intuitive, and more aligned with how clients operate today.

• Faster turnaround times: Time is a critical factor in trade transactions. By optimizing processing pipelines, the bank helps clients move goods and payments more efficiently.

• Specialized SCF product teams: Dedicated teams now work closely with clients to understand their business models, payment cycles, and supplier networks. These experts design customized, advisory-driven solutions instead of one-size-fits-all offerings.

The impact has been significant: RCBC reports that SCF transaction volumes have more than tripled compared to the previous year. Meanwhile, the bank’s overall trade and supply chain finance (TSCF) balances are growing at double-digit rates.

Strengthening Industries Through End-to-End Trade Support

RCBC’s growing presence in trade and supply chain financing stems from its long-standing mission to support Philippine industries at every stage of their growth.

Today, the bank’s TSCF services cover a comprehensive range of needs:

• Basic trade payments

• Payment guarantees

• Pre-shipment and post-shipment working capital

• Collections for trade-related transactions

These offerings complement RCBC’s broader Corporate Cash Management solutions, allowing businesses to streamline payments, automate collections, and manage liquidity across their operations. This full-suite approach enables companies to operate with the efficiency and financial stability required in a competitive business landscape. More importantly, it makes RCBC a trusted partner in long-term business transformation.

Why RCBC’s Growth Matters to the Philippine Economy

As the 5th largest privately owned universal bank in the Philippines, RCBC plays a strategic role in shaping the country’s financial infrastructure. Supporting trade flows is one of the most direct ways banks contribute to economic activity, job generation, and industry expansion.

Here’s why RCBC’s 2025 outlook is a meaningful signal:

1. Stronger Supply Chains Mean Stronger Businesses

When suppliers gain access to early payment, they can operate more efficiently and fulfill orders more consistently. This stabilizes industries and reduces the risk of bottlenecks.

2. Working Capital Flexibility Encourages Innovation

Buyers with stronger cash flow can invest in growth areas, such as digitalization, new product lines, or market expansion.

3. Export Growth Enhances the Philippines’ Global Competitiveness

Double-digit export growth indicates rising demand and improved productivity across sectors.

4. Financial Inclusion For Suppliers and SMEs

SCF programs often extend benefits to smaller suppliers who may not qualify for traditional loans but can access funding through anchor buyers.

In short, RCBC’s expanding trade and SCF portfolio creates ripple effects that strengthen the backbone of Philippine commerce.

Looking Ahead: A More Connected and Competitive Trade Ecosystem

As SCF adoption increases, more companies are expected to adopt digital, collaborative financing models that strengthen their supply chain networks. RCBC’s investment in specialized teams, streamlined processes, and advisory-led solutions positions the bank to support this shift.

As businesses navigate 2025, RCBC is set to play an even more influential role in creating trade ecosystems that are agile, financially resilient, and built for long-term growth.

Are you ready to explore smarter trade and supply chain financing? RCBC offers tailored solutions to help businesses improve cash flow and strengthen supplier relationships.

Discover how RCBC’s Trade and Supply Chain Financing services can support your growth. Contact us today to learn more.