Security Bank sets ambitious goal for small business loans
Frederic Dy’s Security Bank is setting up a new banking division to capture a sizeable chunk of micro, small and medium enterprise (MSMEs) loans in the the next few years.
It recently launched its Business Banking Segment (BBS), which will support the expansion of MSMEs, which comprise over 99 percent of the country’s enterprises.
“Security Bank’s Business Banking Segment hopes to capture 20 percent of MSMEs in the next three to five years,” the lender said.
“This will be done through enhancements in various customer touchpoints such as branch banking, telesales, social media, client support and business development,” it added.
Its key loan products include business mortgage loans, which allow customers to borrow up to 80 percent of the appraised value of their collateral.
Clients can borrow up to P30 million with payment terms stretching as long as 20 years in monthly installments.
Funding options
There is also an option to tap a revolving credit line, which allows borrowers to access shorter-term financing for six to 12 months. Also on offer are “express” business loans, allowing clients to get up to P5 million to help grow their business.
“We are very excited to serve our MSME clients through our Business Banking segment,” said Security Bank segment head John David Yap.
“We will continue to innovate to meet the needs of MSMEs —transform the lending journey with faster turnaround times, develop new product bundles and optimize interactions through digital channels,” he added.
Their new banking division will also offer affordable checking accounts with access to their cash management platform, DigiBanker.
“Every MSME has unique business goals and challenges that entail customized services and solutions. BBS’s nonlending and lending products can help them meet their objectives through financial inclusion, holistic support, and tailor-fit products and services,” said Marjorie Esplana, first vice president and head of sales at Security Bank’s Business Banking Segment.
