Security Bank Corporation (Security Bank) is looking at doubling its lending to micro, small, and medium-scale enterprises (MSMEs) in the Philippines by launching a business banking segment that focuses on the sector.
Facade short of Security Bank in Quezon City (IMAGE CREDIT: www.dreamstime.com)
In a press statement, Security Bank president and CEO Sanjiv Vohra said the bank recognizes that MSMEs are a vital sector of the Philippine economy with great potential for growth.
“We realized, however, that MSMEs lacked the support to thrive as pandemic restrictions eased and the economic recovery picked up,” Vohra said.
Vohra added that the newest customer segment would be dedicated to supporting Filipino MSMEs.
“We understand that running a successful business requires a solid financial foundation and a dependable partner who not only listens to the specific needs of small businesses but also commits to providing comprehensive solutions that fit their requirements,” he said.
For his part, John David Yap, senior vice president, and business banking segment head at Security Bank, said, “The bank aims to extend much-needed support to the priority segment that comprises 99.5 percent of business firms in the Philippines, 65 percent of the total jobs, and 40 percent of domestic output as measured by the gross domestic product (GDP).”
“We will continue to innovate to meet the needs of MSMEs, transform the lending journey with faster turnaround times, develop new product bundles, and optimize interactions through digital channels,” he added.
According to Yap, Security Bank projects to double the loan bookings for MSMEs with the launch of the business banking segment focusing on the sector.
“For the target volume for 2023, we’re looking to double what we did in 2022,” he explained.
Bank employees at Security Bank attend to an MSME customer. (IMAGE CREDIT: molito.com.ph/securitybank)
The bank now aims to grow its lending business by a high, single-digit level this year after a 12-percent increase to P503 billion last year from P467 billion in 2021. Likewise, the bank’s deposits increased by 16 percent to P606 billion from P524 billion.
Yap said that the business banking segment aims to contribute between 30 to 40 percent of the projected lending growth this year.
The segment hopes to capture 20 percent of MSMEs in the next three to five years.
Through the new segment, Security Bank is aiming to provide its clients with more relevant products, such as “Business Plus,” which offers an affordable checking account that comes with free access to the management platform Digibanker as well as business insurance in partnership with FWD.