To entice more clients, Security Bank is playing a new game
Security Bank is done playing the “big game” that other local banking giants might be playing too much.
For years, the company has been everywhere, especially in the corporate sector where other big banks aggressively compete for secured loans. It has built a legacy of world-class banking service, enabling it to create a mammoth lending portfolio amounting to over P588 billion to date.
So what’s still in store for a 73-year-old bank that has already earned a high level of trust and loyalty from clients? Lucose Eralil, chief operating officer at Security Bank, says the company has set its sights on two segments where it can offer more “customer-centric customized products”: wealth management and financing for micro, small and medium enterprises (MSMEs).
“If you look at the emphasis that we have in investments, we definitely want to be within the top bracket in wealth [management]. Wealth is a nascent segment that is evolving in the Philippines and we absolutely want to be there,” Eralil told the Inquirer in a recent chat.
The work has begun for Security Bank. Last year, the bank had introduced what it calls a “tripod model” to offer high-net-worth (HNW) clients “holistic and interdisciplinary” services under the care of a wealth manager, service manager and investment advisor.
Talk about customer-centric products, HNW clients of Security Bank also enjoy unique benefits such as preferential rates for time deposits, waived annual credit card fees, dedicated customer service, free local ATM withdrawals (including non-Security Bank ATMs), and hassle-free pickup and delivery of bank documents, to name a few.
Security Bank is also building out its new wealth management platform to automate and standardize workflows and enable a full spectrum of investment advisory services and products for its rich clients.
And the bank has been recognized for this work. Earlier this year, Security Bank was named the Philippines’ Best for High-Net-Worth Clients at the prestigious Euromoney Global Private Banking Awards 2024.
360 approach
To capture a sizable chunk of MSME loans in the next few years, Security Bank last year launched its Business Banking Segment which will support the sector deemed as the backbone of the Philippine economy.
“The investments that we have done by creating an MSME-dedicated segment is another focus. We want to be there because nearly 60 plus percent of the MSME market is untapped in the Philippines and it’s a great opportunity to drive the whole-of-nation financial inclusion,” Eralil says.
Its key loan products include business mortgage loans, which allow customers to borrow up to 80 percent of the appraised value of their collateral. Clients can borrow up to P30 million with payment terms stretching as long as 20 years in monthly installments.
There is also an option to tap a revolving credit line, which allows borrowers to access shorter-term financing for six to 12 months. Also on offer are “express” business loans, allowing clients to get up to P5 million to help grow their business.
All these business moves show that Security Bank can afford to “not be everywhere” and put more focus on the unique needs of their clients, Eralil says.
“We’re traditionally known as a good corporate bank. That has been our traditional history and we continue to focus on that,” he adds.
“But what you see in Security Bank—from a corporate banking perspective—is to be able to create customer-centric customized products, which is what we want to be and not play the big game and be everywhere. So it’s a full 360 kind of approach,” he continues.
These are all possible because of technology. To date, all 328 Security Bank branches nationwide have been upgraded with Mosaic Voyager—a new tellering and lobby management system to speed up transactions and manage branch lobby traffic.
At the same time, the bank’s new payment hub provides streamlined operations, reduced transaction times and enhanced security. Deployment of cloud computing has also led to better operational flexibility and scalability of services, enabling Security Bank to rapidly adapt to changing market demands and customer needs.
“My aspiration is I want Security Bank to be the number one technology driven financial institution in the Philippines,” Eralil says.
“For me, that’s a North Star.”
