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Friday, March 29, 2024

BDO buys Diners Club rights

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BDO Unibank Inc., the country’s largest lender controlled by tycoon Henry Sy, has acquired the franchise of SB Cards Corp. to be the exclusive issuer of Diners Club International credits cards in the Philippines.

SB Cards Corp. has been issuing Diners Club cards in the Philippines. SB Cards is the credit card subsidiary of Security Bank Corp., one of the biggest universal banks in the country.

BDO said in a statement it signed an agreement with SB Cards whereby it accepted SB Cards’ offer to sell its rights as the sole issuer and acquirer of Diners Club credit cards locally.

BDO said the acquisition includes SB Cards’ existing Diners Club portfolio and its cardholder base. Subject to certain approval requirements, the transaction is expected to be completed within two to three months. The bank did not provide details on the acquisition price.

BDO executive vice president Rolando Tanchanco said the partnership with Diners Club International would further strengthen its card portfolio in the Philippines. 

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BDO currently has the most card brands in the country, being the issuer for MasterCard, Visa, American Express JCB and UnionPay.

“The Diners Club portfolio will allow us to deliver new customer benefits to our card members. SB Cards has built a quality portfolio, and we are excited to work with those card members as well as start to issue new Diners Club cards,” Tanchanco said.

SB Cards president Ma. Cristina Tingson said “the move is a strategic decision to focus on our existing card issuing business with MasterCard as our main credit card offering which we will actively expand and strengthen for our customers.”

She said SB Cards’ business remained a critical leg of its retail bank, a crucial driver of the overall growth strategy of Security Bank.

“Our discipline to focus on our goals enables us to sustain the significant progress we have made in delivering our promise of BetterBanking to our customers. We will continue to provide products and services that are responsive to the changing needs of our market,” she said.

Tanchonco said SB Cards would still provide systems and operational support to ensure the seamless transition of the business to BDO.

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