Security Bank sees higher demand for auto, home loans

Security Bank Corp. believes demand for auto and house loans will grow this year due to its artificial intelligence-backed data system.

Security Bank’s head for retail banking Rahul Rasal said the bank estimates auto loans to double this year from a 10 percent growth in 2023.

Meanwhile, he said house loans could increase by 15 to 20 percent.

‘Projected loan increases are attributed to Security Bank’s relatively smaller customer base compared to other universal banks in the country. “We see decent consumer growth yearon-year because we’re coming from a low base.’

Better data experience

“We expect growth in loans to continue. We have better experience in data, new systems by which we’re going to process borrowers,” Rasal said.

He said the bank plans to maximize technology to reach out to more financially capable consumers and keep its bad loans to a minimal level amid economic uncertainties.

“Our segment is the affluent. That makes us protected from economic ups and downs,” Rasal said.

The bank executive also attributed the projected loan increases to Security Bank’s relatively smaller customer base compared to other universal banks in the country.

Decent consumer growth

“We see decent consumer growth year-on-year because we’re coming from a low base,” Rasal said.

Potential income-earners or participants in the country’s labor force have increased to 52 million, according to the Philippine Statistics Authority.

Meanwhile, credit analyst S&P Global Ratings estimates Filipinos’ economic prosperity measured in gross domestic product per capita could improve from $3,903 last year to $4,273 this year.

S&P says the growth factors for this include the country’s diversified economy and stable foreign direct investments outlook for the next two years.