A guarantor’s story

In the Seventies, SM had grown from a shoe store to a department store, and was introducing many new innovations — a one-stop shopping experience, an exciting store layout, and a wide assortment of merchandise that was stylish as well as affordable. 

It was also during that time that it introduced the use of the SM Card, which gave customers a whole new shopping experience.  The SM Card, which allowed one to shop on easy credit terms, was issued through guarantors, who as the term implies, guaranteed the purchases and managed the payments of those to whom the cards were issued.

I was working at the Philippine National Bank when in 1975-1976 I learned about the guarantor system of SM. The husband of my immediate boss, who was a friend of the Sys, helped me be one of their trusted guarantors.  It all happened very quickly – I was introduced then gave one of our real properties as collateral, and before I realized it, I was already distributing the cards.

I was guarantor number 46, which means I was one among SM’s first guarantors, and I was proud of it.  As guarantors, we had regular meetings with management representatives, wherein we voiced our suggestions regarding the mode of installments so it would be easier for us to remit our collections.  I remember that management would always take our suggestions into consideration, and it was a very harmonious relationship we had with them.

Looking back, I think my banking background helped me manage my SM card business well enough for me to venture into other lines of businesses like real estate.  I though born in La Union, I spent my childhood and schooling years in Baguio City, where I graduated with a BS Commerce course (cum laude) from St. Louis University in 1967.  My major was banking and finance, and after graduation, I initially worked at the People’s Bank and Trust Company in Baguio City.

My desire to seek for career advancement brought me to Manila, and I first worked at the Far East Bank and Trust Company in Intramuros, Manila, before joining the Philippine National Bank in 1969.

As a banker, I was well aware of the value of good credit and trust, which the guarantor system is built on.  Working in a bank also gave me the fundamentals in managing my accounts and balancing my books.

I am often asked if the guarantor business is the forerunner of today’s credit cards.  There were major credit cards during that time, but these were available to only a chosen few.  I look at the SM card as the credit card of the average Filipino as it helped them buy their basic necessities at very affordable terms.  I am not surprised why SM has often been called the store of the people – early on it trusted the middle class by providing credit through the SM Card.  That is perhaps one of the reasons for its phenomenal success.

Most of our cardholders were PNB employees, and it was not long before two of my colleagues in the Bank — Carol Quizon and Chit Ramos — saw the potentials of the business and also became SM guarantors.

The fact that my husband and I were also starting a family also helped me appreciate the SM Card. It allowed me to purchase items needed for the home and my family on easy credit terms, and it helped me with my household budget.

Being an SM guarantor helped my family financially and has been a blessing to us.  It allowed us to live comfortably, and for my children to go attend the best schools in their formative years– Ateneo and Holy Spirit. 

As a mother, I can say I am proud of my children.  I have instilled in them the value of hard work, and above all to be God fearing, which encompasses all virtues as a solid foundation for an upright life. One of my sons, Joseph Raymond, is a businessman in Sta. Rosa, Laguna, while the other Nicanor, Jr. is a nursing student at Fatima College.

My only daughter Bernadette is a broadcast journalist with ABS-CBN.  I was elated when I learned that SM would be sponsoring her clothes for her show Umagang Kay Ganda.  The clothes she wears complements her bubbly personality, and she feels stylish and comfortable with the outfits SM provides. More than that, it made me feel that SM has always been a part of my family’s life.  Imagine, I began as an SM guarantor, and now Bernadette wears clothes retailed by   SM for television.

When I availed of my early retirement in 1987 and decided to come back and stay in Baguio in 1990, managing the card guarantor business became more difficult.  That was when, after more than 20 years as SM guarantor I decided to also retire the business in 2000. Being a guarantor of SM will however always be part of our lives.  We have seen SM grow through the years, and I am happy to have been part of that growth.

I was already residing in Baguio when there was news that SM was putting up a mall.  At first, there were fears and hesitation among residents, but today we see how it has been a catalyst for the city’s growth – providing employment, business, and tourism opportunities.

When I was elected a city councilor during the last elections, I saw how SM would help us in our livelihood, tourism, and educational programs.  That is when I realized how my relationship with SM had turned full circle – I had started out as a guarantor, and today, we are working together to help make Baguio our dream city, in as much the same way that SM helped countless people begin and manage their life frugally yet comfortably.