Security Bank launches new segment to cater to MSMEs

Security Bank on Tuesday launched a new banking segment that will cater to the financing requirements of micro, small, and medium enterprises (MSMEs).

At a press briefing in Makati City, Security Bank president Sanjiv Vohra led the introduction of the lender’s Business Banking Segment —the bank’s new sectoral arm servicing MSMEs.

“In the Philippines, MSMEs comprise 99.5% of all businesses, and are responsible for close to 65% of total employment, contributing to 40% of GDP (gross domestic product),” Security Bank Business Banking Segment head John David Yap said.

“However, these businesses remain underserved by formal banking institutions with high balance requirements for their business accounts and challenging loan application client journeys,” Yap said.

For her part, Security Bank head of Business Banking Segment Sales Marjorie Esplana said the bank through the new segment offers affordable loan products to help MSMEs grow their business.

Esplana said the Business Banking Segment has two key loan products, namely the Business Mortgage Loan (BML) and Business Express Loan (BEL).

Under the BML, customers can loan up to P30 million and pay it up to 20 years in monthly installments. The BML also has a Revolving Credit Line version that gives small businesses access to short-term funds ranging six to 12 months.

The BEL, on the other hand, allows customers to get up to P5 million to help grow their businesses.

Esplana said the interest rates of the loan products under the Business Banking Segment are “within benchmark of the industry.”

Yap said Security Bank aims to double its Business Banking loan clients this year.

“Our goal for the Business Banking Segment is to be a relevant contributor to Security Bank in terms of revenues,” he said.

“From a market standpoint, we hope the Business Banking Segment will fall in the top 3 banks where MSMEs will take their financial services,” he added.

Security Bank is eyeing to capture 20% of MSMEs in the next three to five years.—AOL, GMA Integrated News