Security Bank puts up P1-B expansion cache
Security Bank Corp. of tycoon Frederick Dy plans to put up 72 more branches in the next two to three years as part of a P1-billion expansion plan, meant to help reach more customers in underserved areas.Sanjiv Vohra, president and CEO of Security Bank, told reporters last week that they had already opened their 328th branch in Ilagan City, Isabela province, moving them closer toward their goal of reaching 350 branches by the end of this year.
“Our intent is to [bring] these branches more toward our consumer segments, which are the mass-affluent segments as well as MSMEs (micro, small and medium enterprises) that need physical presence for servicing,” Vohra said.
Security Bank, the country’s eighth-largest bank in terms of assets, currently has 1.7 million customers.
Vohra also explained that they were using artificial intelligence and data analytics to determine their priority locations, primarily outside Metro Manila.
The bank boss said that this year, they already had “a number of branches” coming in the provinces, as they already had a “pretty strong presence” in the capital.
Hitting the bank’s 350-branch target entails an investment of around P330 million, as about P15 million is needed to put up a single branch, according to Security Bank chief financial officer Edu Olbes.
Since they will need to build 22 more branches to reach this goal, this is seen to be among Security Bank’s most aggressive expansion ventures since acquiring Premier Development Bank in 2011.
Olbes said that acquisition came with a “spurt” in branch expansion, as the P1.3-billion transaction included 38 branches or the acquired bank.
Part of their expansion strategy in the coming years is an omni-channel approach, meaning they would have to develop different channels, such as digital, that will be used by customers.
In their newer branches, Security Bank put up self-service and digital areas through which their customers could make quick digital transactions to avoid long lines. —MEG J. ADONIS INQ
