Security Bank’s consumer finance unit to double loan portfolio with Thai bank

Security Bank Corp. on Thursday said it is expecting to double its loan portfolio under consumer finance through its strategic partnership with Thailand’s Bank of Ayudhya (Krungsri).

“Krungsri is number one in Thailand so we expect for them to be able to help us and give us their expertise in this area so that we can grow the portfolio double as soon as possible,” Security Bank senior vice president and Consumer Business and Operations Group head Abigail Casanova said during a media roundtable in Makati City.

“Right now, the loan portfolio of SBF (SB Finance Company Inc.) is P5.5 billion,” Casanova noted.

Security Bank earlier said Krungsri was to acquire 50% of SB Finance, pending regulatory approval.

Under the partnership, the two banks are set to provide consumer finance products to more Filipinos, which will strengthen the relationship between the two institutions.

Security Bank is expecting SBF to grow its loan portfolio and loan products suite in the country’s unsecured personal loan segment, while leveraging on Krungsri’s expertise in the ASEAN retail finance market.

“We expect to launch several consumer-centric products and to reach more mass market Filipinos. In their country that is their expertise, the mass market,” Casanova said.

Among the consumer-centric finance products to be launched under the partnership are motorcycle loans, installment card loans, and appliance loans.

Casanova said that SBF’s loan portfolio consisted mainly of personal loans. With new products to be launched, the bank is expecting to expand this portfolio.

Krungsri is the number one consumer finance provider in Thailand, with footprints in Laos, Cambodia and Myanmar, according to Security Bank.

“Krungsri is the largest credit card issuer in Thailand. It has approximately nine and a half million cards in issuances, which is probably larger than the entire industry put together in the Philippines,” Security Bank president Sanjiv Vohra said during the roundtable.

“Krungsri is also a dominant player in products such as auto loans, personal loans, etc. What we’re trying to achieve through this partnership is to combine the expertise of Krungsri in consumer finance know-how with SBF’s expertise in customer know-how ... We hope to widen our market reach, offer customized financing solutions to all Filipinos nationwide,” Vohra added. —VDS, GMA News