Deal with Thailand’s Krungsri raises P1.53B for Security Bank

Lender Security Bank has generated P1.53 billion from the sale of a 50-percent stake in consumer finance arm, SB Finance Co., to Bank of Ayudhya or the Krungsri group of Thailand.

But beyond the proceeds from the sale, this buy-in deal formed a partnership that was envisioned to “make a customer-centric digital lending experience available to all Filipinos and small business owners,” Security Bank said on Wednesday in a disclosure about the transaction. Both firms have MUFG Bank Ltd. of Japan as a common shareholder.

“SB Finance is expected to grow 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,” the disclosure read.

The partnership would offer loan products answering the personal and small business needs of Filipinos “while building on Krungsri’s expertise as the number one consumer finance provider in Thailand,” the disclosure added.

“The strategic partnership with Krungsri will help rebuild consumer confidence and enhance financial inclusion at this time of the COVID-19 pandemic. By leveraging on Krungsri’s strength in the (Association of Southeast Asian Nations) retail finance market and in consumer risk management, SB Finance can contribute meaningfully to the economic recovery of the Philippines,” the disclosure said.—DORIS DUMLAO-ABADILLA