Security Bank is bolstering its digital infrastructure with the integration of advanced fraud detection capabilities, including cutting-edge deepfake prevention, into its electronic Know Your Customer (eKYC) process.
This strategic enhancement, powered by a partnership with security solutions provider Entrust, underscores the bank’s commitment to a secure and seamless digital onboarding experience as the Philippines’ digital banking landscape braces for explosive growth.
The collaboration will see Security Bank leverage Entrust’s Onfido Studio platform, a robust solution equipped with state-of-the-art security features.
This move directly addresses the increasing sophistication of online fraud, ensuring that new customers can be onboarded efficiently while safeguarding the bank and its clientele against fraudulent activities, including the increasingly prevalent threat of deepfake identity manipulation.
Security Bank’s digital onboarding prioritizes speed, safety
Security Bank emphasized that this technological upgrade to its new mobile application is geared towards streamlining the digital onboarding journey, making it faster and more secure for new customers to access their services. This focus on user experience aligns with the broader trend of digital transformation sweeping across the Philippine financial sector.
This digital fortification comes at a crucial juncture, as the Philippine digital banking market is projected to experience a remarkable 31% compound annual growth rate through 2029, reaching a substantial market volume of $2.16 billion, according to Statista. Recognizing this immense potential, Security Bank is strategically positioning itself to capitalize on this digital wave.
While the initial focus of the enhanced eKYC process is on retail banking onboarding, Security Bank has ambitious plans to extend Entrust’s identity verification solutions across its entire suite of services in the future. This signals a long-term commitment to embedding robust security measures across all customer touchpoints.
This digital push is a key component of Security Bank’s overarching strategy to significantly boost its profitability, targeting a return on equity (ROE) of approximately 10% by the end of 2025.
According to bank executives, this ambitious goal will be pursued through a multi-pronged approach encompassing the expansion of both physical and digital channels, rigorous cost optimization measures, and a renewed emphasis on delivering customer-centric solutions.
Security Bank’s digital onboarding prioritizes speed, safety
Eduardo Olbes, Chief Financial Officer of Security Bank (Image Credit: https://bnc.ph/)
Eduardo Olbes, Chief Financial Officer of Security Bank, expressed optimism about the bank’s trajectory. “It’s not going to be a straight line, but obviously, the intent of the bank is to continue manifesting better profitability,” he stated, highlighting the consistent improvement in the bank’s performance throughout 2024, with expectations of even greater ROE gains moving forward.
“We are in a better position as of the third quarter than we were at the beginning of 2024, and we see even more improvement in terms of ROEs,” Olbes added.
Further bolstering its strategic positioning, Security Bank made a significant move in December of last year to strengthen its foothold in the consumer finance sector through the acquisition of a 25% ownership interest in Home Credit Philippines (HCPH) from MUFG Bank Ltd. for approximately P11 billion. This deal, anticipated to be finalized by the first quarter of 2025, is expected to further diversify the bank’s revenue streams and expand its reach in the consumer lending market.
Central to Security Bank’s long-term vision is its unwavering commitment to its “Better Banking” pledge. This philosophy prioritizes employee empowerment and the delivery of tailored customer solutions, recognizing that a satisfied customer base is crucial for sustainable growth and profitability.
Sanjiv Vohra, President and CEO of Security Bank, underscored the bank’s dedication to this principle. “We’ll continue to execute on our goal to be the most customer-centric bank in the Philippines, leveraging our technology to provide customized solutions, in line with our vision for 2025,” Vohra affirmed.
This customer-centric approach will be significantly amplified by the upcoming launch of two new dedicated mobile banking applications in the first half of 2025. One app will cater specifically to the unique needs of corporate clients, while the other will be tailored for micro, small, and medium-sized enterprises (MSMEs).
These specialized platforms aim to provide more streamlined, efficient, and relevant banking experiences for these vital segments of the Philippine economy.
Beyond lending: The push for digital wealth and cost efficiency
Expanding its digital service offerings even further, Security Bank plans to integrate a comprehensive wealth management feature into its mobile banking platform by late 2025 or early 2026.
This strategic addition will empower customers to conveniently manage their investments and financial planning directly through their mobile devices, offering a holistic suite of financial tools at their fingertips and positioning the bank to capture a larger share of the burgeoning digital wealth management market.
The pursuit of enhanced profitability for Security Bank is not solely dependent on revenue growth. The bank is also implementing stringent cost optimization measures to improve its bottom line.
By streamlining operational processes and enhancing efficiency across its various units, Security Bank aims to maximize profitability without compromising the quality of its services or its commitment to customer satisfaction.
Industry analysts will be closely monitoring Security Bank’s performance throughout 2025 to assess the tangible outcomes of its ambitious strategic initiatives. The successful implementation of its digital expansion plans, the effectiveness of its customer-centric approach, and the impact of its cost optimization efforts will be key indicators of the bank’s ability to achieve its targeted 10% ROE by the end of the year.
In a dynamic and competitive Philippine banking landscape, Security Bank’s focus on technological innovation and customer satisfaction will be crucial for its continued growth and sustained success.