Bank allots P150M for expansion

CEBU, Philippines - As the banking industry in the Philippines continues to offer a promising outlook, Security Bank targets to reach at least 300 branches in three years to capture a sizeable chunk of the growing market.

The universal bank's president and chief executive officer Alberto Villarosa said in a press conference that the bank is spending around P5 million for every branch opening, summing up a total investment of P150 million for the targeted number of branches to open.

While the expansion plan is on, Villarosa said that the bank is also constantly on its toes "to make sure that we get a high productive level on the branches that we recently opened."

At present, there are a total of 256 Security Bank branches across the Philippines. Aside from active and interesting banking market in the country today, this positioning is also partly to strengthen the bank's grip in the local market, as the industry is expecting more foreign banks to come in the face of ASEAN integration.

Villarosa said the Philippines is one of the most attractive banking markets in ASEAN, or in Asia in general. He said the Philippines offers better margin compared to that of Taiwan, Indonesia and some other neighboring countries.

"The potential is good," said Villarosa who is also the past president of the Bankers Association of the Philippines.

Early this year, the bank announced its move to make a strong connection with the young generation depositors.

The young generation community is one of the identified strongest growth drivers of the bank.

Ma. Cristina A. Tingson, the bank’s senior vice president for retail and consumer banking said earlier that the bank has started its re-branding move to get a bigger chunk of the retail and young markets, as well as spending on renovation to hit the sophisticated taste of youthful taste of the changing market.

Aside from introducing more products to attract this new target market, Tingson said the bank has also embarked on careful re-branding strategy saying “We needed to re-brand to attract the retail market and re-introduce ourselves.

Currently, 90 percent of the bank’s loan portfolio is under corporate and commercial banking segment.

Since 2012, the publicly-listed bank started to move on providing striking product offers for the retail market noting the active stance of the individual customers to take advantage of the low interest rate regime that boosts the loan portfolio of the banking institutions in the Philippines.

Historically, Security Bank is also known for its credit card, home and auto loan, as well as personal loan products. This time, Tingson said the bank has created a roadmap to further maximize the growth of consumer and retail banking in the country.

Early this year, the bank launched its new brand promise of a “better banking experience,” in line with its initiatives of strengthening its core business.

The Universal bank has been in the process of implementing a two-year expansion program and the new corporate culture is the anchor to this program.

“Security Bank. You Deserve Better.” Is the new brand promise and exemplifies the Bank’s intent to expand the primary target market exponentially which will include various customer-centric programs and initiatives to address the growing retail banking segment.

In 2013, the bank delivered on its growth objectives, highlighted by the 38 percent increase of its loan portfolio to P165 billion, out-pacing the banking industry’s 16 percent growth for the year. (FREEMAN)