SB Finance sets aside cash for online lending service

SB Finance Co. Inc., a unit of Security Banking Corp., said last Tuesday it is allotting some 15 percent of the P3 billion in capital infusion from its principals to invest in its digitalization efforts marked initially by more online loan products.

“SB Finance’s goal is to create products and services to support the average Filipino and the small businessmen in their financial needs while creating a customer-centered journey in the new digital normal. To do this, we needed a strong partner who has an extensive experience in the field of consumer finance who can guide us in the right direction,” SB Finance President and CEO Abigail Marie D. Casanova said.

The rest of the funds, meanwhile, will be deployed across the company through July as the financial firm seeks regulatory approval, Casanova added.

In February, Security Bank and Krungsri (Bank of Ayudhya Public Co. Ltd.), the fifth largest financial group in Thailand, have obtained board approvals to infuse P3 billion 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 built on continued digital transformation.

The company has launched a new campaign in a move to expand its reach to the mass market and help reset economic growth in the new normal. It will offer its new loan products this year.

The company has about 30,000 clients.

SB Finance which mainly offers personal loans, is set to roll-out various loan products this year.

“Since Krungsri has successfully acquired a 50 percent stake of ownership in SB Finance on October 20, 2020, we have been supporting SB Finance through our expertise and leadership in Thailand’s consumer finance encompassing product development, marketing, and sales channel enhancement as well as risk management. We are set to launch multiple products this year and this also further cements Krungsri’s strategic partnership with Security Bank to foster financial inclusion in the Philippines and demonstrates Krungsri’s commitment to our Asean [Association of Southeast Asian Nations] region expansion strategy toward our aspiration to ‘be the preferred Thai bank connecting customers’ needs across ASEAN,” Dan Harsono, senior advisor of Krungsri, said.

The partnership between the two banks is a result of Security Bank and Japan’s MUFG’S goal to expand global partnerships while growing local talent and expertise.

In 2016, the Security Bank completed its strategic partnership deal with MUFG, with the Japan lender taking in 20 percent stake into Security Bank.

Since then, both banks have leveraged on their combined networks and capabilities to collaborate on various initiatives, such as the joint venture of SB Finance and Krungsri.