Security Bank Corp. said Monday it formed a joint venture with Japan’s Mitsubishi Motors Corp. (MMC) to offer financial services to the automotive market in the Philippines.
Security Bank said in a stock exchange filing the joint venture partners would form Mitsubishi Motors Finance Philippines Inc. to offer financing services to Mitsubishi Motors’ customers in the country.
The new company is expected to start operations next year, with MMC holding a 51-percent ownership stake in the new company and Security Bank getting 49 percent.
The completion of this transaction is subject to regulatory approval.
“This joint venture is in line with Security Bank’s commitment to provide superior customer experience through our ‘BetterBanking’ brand promise,” Security Bank president and chief executive Sanjiv Vohra said.
“By combining the strengths of both Mitsubishi Motors and Security Bank through this new company, we are in the best position to offer enhanced auto financing services to match our customers’ needs. This means more attractive promos, competitive financing packages, and fast decisioning. Thus, we deliver better value to customers,” he said.
The bank said the country saw a rapid growth in the new car market, aligned with the growth of the population and economy. The trend is likely to continue in the medium term.
It also noted that financing services are essential for customers in the country as most rely on financing when buying cars.
Through this joint venture, Security Bank and MMC will be able to offer a range of sales financing services for customers.
“This is our 61st year in business in the Philippines, where we now have a strong presence and a large market share,” said Tatsuo Nakamura, executive vice president of Mitsubishi Motors.
“Mitsubishi Motors is very pleased to be able to partner with Security Bank that is one of the best financial institutions in the Philippines. Through this joint venture, we hope we can provide Mitsubishi Motors vehicles to more customers in this ever-expanding market. Also, we will continue to make efforts to satisfy customers more through our products and services that embody Mitsubishi Motors-ness,” it said.