Security Bank Corporation (SBC) has sealed a strategic partnership with Thailand’s Bank of Ayudhya, commonly known as Krungsri, with the sale of half of consumer finance subsidiary SB Finance Company, Inc.
In a disclosure to the Philippine Stock Exchange, PSBank said Krungsri has acquired a 50 percent stake in SB Finance after having obtained all the necessary regulatory approvals in the Philippines and in Thailand.
“The partnership will make a customer-centric digital lending experience available to all Filipinos and small business owners and will strengthen the relationship between the two institutions which have MUFG Bank, Ltd. as a common shareholder,” PSBank said.
Security Bank President Sanjiv Vohra said, “The closing of this transaction comes at a very opportune time. This strategic partnership with Bank of Ayudhya will help rebuild consumer confidence and enhance financial inclusion at this time of the COVID-19 pandemic.”
He added that, “We are confident that by leveraging on Krungsri’s strength in the ASEAN retail finance market and in consumer risk management, we can contribute meaningfully to the economic recovery of the Philippines.”
In 2016, MUFG Bank bought a 20 percent stake in Security Bank Corporation that allowed the local bank to access MUFG’s global expertise and grow its business beyond local borders.
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.
The partnership is set to offer various loan products that cater to personal and small business needs of the Filipino market, while building on Krungsri’s expertise as the number one consumer finance provider in Thailand. Krungsri and Security Bank appointed ING Bank N.V. as financial advisor on this transaction.