Security Bank, Thai partner inject P3 B in new JV

Security Bank Corp. and Thailand’s Bank of Ayudhya (Krungsri) are infusing P3 billion into their leasing and finance joint venture in anticipation of strong demand from the consumer finance segment as the economy recovers from the pandemic-induced recession.

Security Bank president and chief executive officer Sanjiv Vohra said the capital infusion of both Security Bank and Krungsri into SB Finance is an expression of support in the recovery of the economy.

“This move shows that SB Finance is ready to help foster economic growth as businesses begin to recover from the effects of the pandemic. This additional capital infusion further cements Security Bank’s strategic partnership with Krungsri to help rebuild consumer confidence and foster financial inclusion,” Vohra said.

Abigail Casanova, president and CEO at SB Finance, said the additional capital would be used for business expansion with the anticipated recovery of the economy from the impact of the pandemic.

“As we anticipate the recovery of the economy and the resurgence of pent-up demand in the consumer finance segment, the additional capital will be used for business expansion as we are set to launch multiple products this year starting with Car-4Cash, a proven successful loan product offering of Krungsri in Thailand,” Casanova said.

Casanova said the additional capital would also be used to fund investment in the latest cloud-based technology to support end-to-end customer journey coupled with digital transformation and to strengthen internal capabilities.

Security Bank and Krungsri sealed their partnership on October last year as the Thai bank acquired a 50 percent stake in SB Finance for P1.53 billion.

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.

Casanova earlier told The STAR the partnership is providing credit to the mass market in response to the call of the central bank for financial inclusion.

“It will have multiplier effects to the economy when the mass market feels confident in their financial knowledge by knowing when to borrow, when and where to save and how to invest,” Casanova said.