Security Bank Corp., the sixth-largest lender in terms of assets, formed a strategic partnership with Bank of Ayudhya, commonly known as Krungsri, the fifth largest financial group in Thailand, in a bid to provide more top-notch consumer finance products to Filipinos.
Security Bank said in a statement Thursday evening Krungsi would acquire a 50-percent stake in SB Finance Co. Inc., the bank’s consumer finance subsidiary. The transaction is subject to regulatory approvals.
Security Bank president and chief executive Sanjiv Vohra said the partnership would see the two banks working together to provide top-notch consumer finance products to more Filipinos. The joint venture strengthens the relationship between the two institutions, which have MUFG Bank Ltd. as a common shareholder.
SB Finance is expected to expand 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.
“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. J
He added the newly-formed alliance was part of Security Bank’s aggressive strategy to expand its retail offerings. The integration will also allow SB Finance 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 roll out 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,” said Vohra, adding the two banks planned to jointly explore opportunities in personal loans, motorcycle loans, and insurance.