Climbing the Digital Ladder in Philippine Finance

Lito Villanueva, Executive Vice President and Chief Innovation and Inclusion Officer, RCBC

Lito Villanueva is the Chief Innovations and Inclusion Officer and Executive Vice President of RCBC, where he leads the bank’s game-changing digital transformation efforts across the Philippines and beyond. With over two decades of leadership in fintech, Lito has been instrumental in driving innovative solutions that bridge technology with empathy, transforming the way financial services reach and uplift underserved communities.

As head of RCBC’s Digital Enterprise Innovations Group, Lito champions a culture of “innovation with empathy,” ensuring every digital initiative not only advances technology but delivers real, human impact—addressing the needs of Filipinos across all socio-economic classes, both at home and abroad.

Under his leadership, RCBC and the Yuchengco Group of Companies have launched multiple award-winning, high-impact initiatives, driven by his passion and purpose to make financial inclusion a reality for every Filipino.

In a recent interview with Banking CIO Outlook, Lito shared his insights on how visionary leadership and inclusive innovation can reshape financial services—merging cutting-edge technology with a deep understanding of the communities it serves.

Pioneering the Philippines’ First Kapitbahay ATM: Where “Phy-gital” Last Mile Banking Meets Community Impact

One of the greatest challenges in advancing financial inclusion in the Philippines lies in our geography—a sprawling archipelago with limited digital infrastructure. For many remote, low-income and geographically isolated communities, access to basic banking services has remained out of reach. With 20 of our 83 provinces among the country’s poorest, the call for innovative, human-centered solutions has never been more urgent.

“I always begin and end with my ‘why’— the driving purpose behind my work. In a rapidly evolving industry, innovation isn’t merely about technology; it’s about solving real problems and making a tangible difference”

This is why I’m incredibly proud of RCBC’s ATM Go—the Philippines’ first neighborhood-based and grassroots-focused mobile ATM network. It’s a powerful example of “phy-gital” banking in action: blending physical presence with digital convenience to bring essential financial services to the last mile.

Through our agency banking model, we’ve empowered nearly 6,000 local agent merchants— often sari-sari (mom-and-pop) store owners or small entrepreneurs—to serve as banking touchpoints in their own communities. These ATM Go terminals operate like traditional ATMs but go where brick-and-mortar banks cannot.

The impact speaks for itself:

• Over 90 percent of transactions take place outside Metro Manila.

• 65 percent directly benefit rural women.

• 70 percent of disbursements fund critical programs—from social grants and government payrolls to teacher salaries and senior citizen pensions.

Innovation that Empowers

Our top priority is delivering an excellent customer experience to every Filipino. Financial services must be affordable, accessible and sustainable—especially for low-income communities. That’s why we’ve introduced digital solutions like RCBC DiskarTech, the world’s first multilingual super financial inclusion app. By eliminating dormancy fees, balance requirements and initial deposit hurdles, we’ve made it effortless for anyone to open an account seamlessly.

We’ve also set industry benchmarks by offering the lowest transfer fees and one of the highest savings interest rates at 4.88 percent annually. This isn’t just about numbers—it’s about making saving attractive and achievable for every Filipino. Leveraging cutting-edge technologies such as AI and Gen AI across our banking initiatives allows us to streamline processes—from cross-selling and risk mitigation to fraud detection and lending— eliminating mundane tasks and reducing operational costs.

These cost savings enable us to enhance our customer service further and deliver world-class execution on every initiative.

Fueling the Philippines’ Digital Economy

The Philippine fintech industry is at an inflection point—and I’m both proud and excited to be part of this transformative journey.

As Chairman of the FinTech Alliance Philippines—the country’s largest digital industry association representing over 130 corporate members and responsible for over 95 percent of retail digital transactions—I’ve had the privilege of witnessing firsthand how collaboration, innovation and technology are reshaping our financial landscape.

Recent studies from S&P Global Market Intelligence tell a compelling story: the Philippines is on track to become a trillion-dollar economy by 2033. And with the country consistently outperforming its ASEAN peers—sustaining a projected GDP growth of five to six percent despite global headwinds—the momentum for digital acceleration has never been stronger.

Critical to this progress is our deep partnership with regulators and our unwavering commitment to robust AntiMoney Laundering (AML) compliance and cybersecurity. These efforts not only safeguard trust and integrity but help elevate the Philippines’ standing in the global financial ecosystem, paving the way for stronger credit ratings and increased investor confidence.

As a fintech advocate and thought leader, I’m equally passionate about driving conversations on digital trust, interoperability and cyber hygiene. Through my regular Philippine Star column, “Bytes,” I continue to champion regulatory reforms and share insights on how technology can power a more inclusive, secure and connected future.

But what excites me most is what lies ahead. The Philippines may currently have just two unicorns—GCash and Maya—but I am confident that this is only the beginning. With renewed investor interest, a thriving digital ecosystem and a dynamic talent pool, I believe the Philippines is poised to become ASEAN’s next fintech powerhouse—creating not just unicorns, but also a future where every Filipino benefits from an empowered digital economy.

Learning, Listening and Leading with Purpose: The Power of Education and Collaboration

Everything I do begins and ends with a clear sense of why—the purpose that fuels my passion and guides my work. In an industry that evolves at breakneck speed, innovation isn’t just about technology—it’s about people. It’s about solving real problems and creating a meaningful, lasting impact.

Technology, by itself, isn’t a silver bullet. Going digital doesn’t automatically lead to progress. What truly moves the needle is education—equipping people with the knowledge and confidence to harness digital tools to improve their lives. That’s why I remain committed to learning relentlessly, listening intentionally and leading with empathy. The voices of the people we serve—from grassroots communities to everyday consumers—shape the way we innovate.

Collaboration is at the heart of this journey. Whether partnering with regulators, fintech players, private organizations or local government units, I believe real change happens when diverse stakeholders come together around a shared purpose.

Our north star remains clear: to make financial services more inclusive, accessible, sustainable and empowering for every Filipino—wherever they may be.

Because in the end, technology is only as powerful as the purpose and people behind it.

When Passion Meets Purpose

Defining your purpose is only the beginning. It’s passion that brings it to life—turning ideas into action and impact. Without authentic passion, purpose risks becoming just another statement on paper. But when passion and purpose come together, that’s when real change happens.

Profitability alone isn’t the true measure of success. Sustainability is. And sustainability means creating solutions that uplift lives, unlock opportunities and empower communities to thrive long after the transaction ends.

Take the story of some of our RCBC ATM Go customers. With an initial capital of just p30,000—roughly US$600—they turned their small venture into a million-peso success story within two years. More importantly, that financial breakthrough allowed them to send their children to school, break free from generational poverty and embrace entrepreneurship with pride and purpose

Stories like these remind me why I do what I do. My role is to be an enabler—working alongside partners, regulators and stakeholders to build solutions that don’t just meet business goals but leave a lasting human impact.

Because when passion meets purpose, we go beyond banking. We build better lives, stronger communities and a more inclusive future for all.

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