Security Bank focuses on retail banking
THE NEW president of Security Bank Corp. seeks to grow retail banking as a formidable new pillar to account for about a third of this bank’s total business from a very modest share at present.
Alfonso Salcedo Jr.—who has expertise in both corporate and consumer banking as former head of Bank of the Philippine Islands’ corporate banking unit and prior to that, as head of BPI Family Bank—was introduced to clients and stakeholders in a cocktail party last Thursday.
By hiring a new executive with Salcedo’s background, Security Bank is seen executing its plan to grow retail banking while continuing to grow the two other segments that had catapulted the bank from being a mid-sized institution into one of the country’s largest banks: wholesale lending and treasury.
At present, retail banking has a single-digit share in Security Bank’s total business. But Salcedo said the retail focus started only two years ago and was jumpstarted by a massive rebranding exercise that was launched with 2013 Miss World titlist Megan Young as the brand ambassador.
The nirvana for Security Bank, Salcedo said, would be to have retail banking contributing about a third of the business.
Part of the bank’s focus would be to gain greater market share, Salcedo said, noting that the size of market share had a correlation with profitability.
“This (retail banking) covers the consumer finance side. Retail banking, to put it simply, is to bring the cost of funds as low as we could and to extend credit card, housing and auto loans,” he said.
Likewise part of this retail banking strategy would be to sell trust products to retail investors, he said. Doris Dumlao-Abadilla
