Business models: distinct and definitive

(Second of two parts)

SEVERAL respondents pointed out that scale is so important in payments that banks and processors are often happy to share infrastructure components, or to subcontract parts of the business to other banks. In many ways it is easier for a bank to work with another bank; it is more likely to understand its partner’s motives, priorities and differentiation factors than when working with a telco or technology company.

RIZAL Commercial Banking Corp. (RCBC) said on Thursday its loan portfolio for small- and medium-sized enterprises (SME) had grown by around P4 billion to over P9 billion after the relaunch of its SME Lending Program in March 2008.

The portfolio had not been expanding for two years, prompting the Yuchengco-led bank to relaunch the lending program last year.

THE peso seesawed on Thursday, extending its gains during the morning session then pulling back later to end the day weaker as demand for US dollars picked up, traders said.

The peso uptrend, however, remained intact and might continue until next year—with Asian currencies seen facing more upward pressure if China allows its currency to appreciate once again, they said.