Lender Security Bank Corp. has teamed up with Bank of Ayudhya, the fifth largest financial group in Thailand and a member of Mitsubishi UFJ Financial Group network, in the consumer finance business.
Security Bank agreed to sell a 50-percent stake in its consumer finance unit SB Finance (SBF) Co. to Bank of Ayudhya, commonly known as Krungsri.
The partnership intends to provide “top-notch” consumer finance products to Filipinos and strengthen the relationship between Security Bank and Krungsri, which have Japan banking giant MUFG as a common shareholder. They plan to explore opportunities in personal loans, motorcycle loans and insurance.
“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,” Security Bank president and CEO Sanjiv Vohra said in a disclosure to the Philippine Stock Exchange.
Krungsri president and CEO Seiichiro Akita said: “The two banks will join hands in developing and delivering quality consumer finance products to people in the Philippines. With expertise and experiences from both sides, the collaboration between Krungsri and SBC (Security Bank) will enhance SBF’s business competitiveness while penetrating and serving the Philippines’ consumer finance market.”
With the partnership, SBF is seen growing 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.
Vohra said the alliance was part of Security Bank’s aggressive strategy to expand its retail offerings. —DORIS DUMLAO-ABADILLA