Security Bank to provide free smartphone insurance

SECURITY Bank Corp. has inked a partnership with an insurance technology (insurtech) player to provide smartphone protection coverage.

In a news statement issued on Thursday, the listed bank said it collaborated with bolttech to give Security Bank cardholders free one-month subscription to its accidental breakage and liquid breakage or screen breakage program.

The announcement failed to lift shares in Security Bank, which fell by 1.59 percent, or P2, to settle at P123.70 each amid the 1.31-percent dip for the benchmark index on Thursday.

The bank said smartphones bought using its credit card and debit card within the last 45 days qualify for the said subscription. The bolttech’s services include repair or replacement of the damaged devices.

After the free subscription expires, Security Bank said that cardholders may continue to use the service but with a monthly fee.

“Our smartphones have become our daily companion for both work and play, hence, making sure it’s protected from accidents is a must,” said Celeste Lim, head of SB Cards Business Development and Operations Group. “Through our partnership with bolttech, Security Bank cardholders can remain at ease knowing that their hard-earned devices are protected and is ready to be serviced by bolttech in as fast as 24 hours.”

“Together, Security Bank cardholders can enjoy fast and seamless repairs so they can always stay connected in a digital-first world,” bolttech Chief Executive Officer of Device Protection Mark Simmons said.

Bolttech is an international insurtech business launched in 2020 with three capabilities including device protection, insurtech exchange and digital insurance. It is present in Austria, Hong Kong, India, Indonesia, Italy, Ireland, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam, and the united States.

Last year, Security Bank saw its net profits plunge by 26.43 percent to P7.4 billion from P10.10 billion in 2019 due to heightened bad loans provisions. Credit loss buffer in the past year was raised by six times to P26.4 billion.

The bank’s total assets stood at P653 billion as of end-december 2020. Capitalization was at P123 billion, with common equity tier 1 ratio of 19.2 percent and capital adequacy ratio of 20.1 percent.