SB Finance sets aside money for online loan service
SB Finance Co. Inc., a unit of Security Banking Corp., said last Tuesday that it was allocating around 15 percent of P3 billion of capital infusion from its constituents to invest in its digitization efforts, initially marked through more online loan products.
“SB Finance’s goal is to create products and services to support the average Filipino and small business owner with their financial needs while creating a customer-centric journey into the new digital normal. To do this, we needed a strong partner who has extensive experience in the field of consumer credit and who can guide us in the right direction, ”said Abigail Marie D. Casanova, President and CEO of SB Finance.
The rest of the funds, meanwhile, will be rolled out across the company until July as the finance company seeks regulatory approval, Casanova added.
In February, Security Bank and Krungsri (Bank of Ayudhya Public Co. Ltd.), Thailand’s fifth largest financial group, obtained board approval to inject 3 billion pesos into SB Finance.
The additional capital will be used to fund investments in the latest cloud-based technology to support end-to-end customer journeys that are driven by continuous digital transformation.
The company has launched a new campaign to expand its reach into the mass market and help restore economic growth to the new normal. This year it will be offering its new credit products.
The company has approximately 30,000 customers.
SB Finance, which mainly offers personal loans, will roll out various credit products this year.
“Since Krungsri successfully acquired a 50% stake in SB Finance on October 20, 2020, we have supported SB Finance with our expertise and leadership in consumer credit in Thailand, encompassing product development, marketing and improving sales channels as well as risk management. We are set to launch several products this year, which also strengthens Krungsri’s strategic partnership with Security Bank to drive financial inclusion in the Philippines and demonstrates Krungsri’s commitment to our Asean. [Association of Southeast Asian Nations] regional expansion strategy towards our aspiration to “be the preferred Thai bank connecting customer needs across ASEAN,” said Dan Harsono, Senior Advisor at Krungsri.
The partnership between the two banks is the result of Security Bank and Japan’s MUFG goal to expand global partnerships while developing local talent and expertise.
In 2016, Security Bank entered into its strategic partnership agreement with MUFG, the Japanese lender taking a 20% stake in Security Bank.
Since then, the two banks have leveraged their combined networks and capabilities to collaborate on various initiatives, such as the joint venture of SB Finance and Krungsri.