SECURITY Bank Corp. on Tuesday, Oct. 20, sealed its strategic partnership with Thailand’s Bank of Ayudhya, commonly known as Krungsri.
Having obtained all the necessary regulatory approvals in the Philippines and in Thailand, Krungsri has acquired a 50 percent stake in SB Finance Company Inc. (SB Finance), Security Bank’s consumer finance subsidiary.
The partnership will make a customer-centric digital lending experience available to all Filipinos and small business owners and will strengthen the relationship between the two institutions which have MUFG Bank Ltd. as a common shareholder.
Security Bank president and chief executive officer Sanjiv Vohra said, “The closing of this transaction comes at a very opportune time. This strategic partnership with Bank of Ayudhya will help rebuild consumer confidence and enhance financial inclusion at this time of the Covid-19 pandemic. We are confident that by leveraging on Krungsri’s strength in the Association of Southeast Asian Nations’ retail finance market and in consumer risk management, we can contribute meaningfully to the economic recovery of the Philippines.”
In 2016, MUFG Bank bought a 20 percent stake in Security Bank Corp. that allowed the local bank to access MUFG’s global expertise and grow its business beyond local borders.
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 partnership is set to offer various loan products that cater to personal and small business needs of the Filipino market, while building on Krungsri’s expertise as the number one consumer finance provider in Thailand.
Krungsri and Security Bank appointed ING Bank N.V. as financial advisor on this transaction. (PR)