Security Bank partners with Thai bank to boost retail
MANILA, Philippines — Security Bank Corp. is taking in Thailand’s Bank of Ayudhya, commonly known as Krungsri, as strategic partner for its consumer finance subsidiary as part of efforts to substantially grow its market share in the retail business.
Security Bank president and chief executive officer Sanjiv Vohra and Krungsri president and CEO Seiichiro Akita inked the strategic partnership agreement wherein the Thai bank or its subsidiaries will acquire a 50 percent interest in SB Finance Co. Inc. (SBF).
“SBC and Krungsri are both committed to accelerating customer-centricity in banking. By localizing the strategies that propelled Krungsri to become Thailand’s market leader in consumer finance, SBF is well positioned to scale the business faster, launch better and more innovative product variants, serve more customers and, in effect, substantially grow its market share in retail business,” Vohra said.
Under the tieup, both banks vowed to work together to provide top-notch consumer finance products to more Filipinos.
The joint venture strengthens the relationship between the two institutions that have MUFG Bank Ltd. as a common shareholder.
SBF is expected to grow its loan portfolio and loan products suite as the collaboration builds on the strengths of Security Bank in the country’s unsecured personal loan segment, while leveraging on Krungsri’s expertise in the ASEAN retail finance market, being the number one consumer finance provider in Thailand, with presence in Laos, Cambodia and Myanmar.
Vohra said the newly formed alliance is part of Security Bank’s aggressive strategy to expand its retail offerings and allow SBF to adopt more sophisticated risk management models and incorporate more process efficiencies in its operations.
“This joint venture is just one of several projects in our pipeline. We plan to rollout more significant initiatives in the future as we further our goal to enhance our customers’ experience and strengthen our position in the consumer retail market,” he said.
The two banks plan to jointly explore opportunities in personal loans, motorcycle loans and insurance.