Security Bank more than doubles R&D spending

MANILA, Philippines — Security Bank Corp. more than doubled its spending for research and development (R&D) to P896.9 million last year from P389.45 million in 2020.

The 130 percent year-on-year increase in R&D budget translated to a higher ratio to revenues of 2.44 percent for 2021 versus 0.77 percent the previous year.

Security Bank’s R&D activities are mainly driven by investments in new information technology (IT) software.

“The efficient use of technology is expected to boost productivity, reduce transaction processing costs, improve management information preparation and delivery, and result to alternative customer channels, efficient business communications, and more timely risk management,” Security Bank said.

In terms of assets, the investments in R&D would assist in reducing operations at the branch level, thereby allowing branch personnel to focus more on customer service.

“The bank’s commitments for capital expenditures will be funded out of cash flows from operations,” it said.

Security Bank’s capital expenditures covers investments in electronic systems to either for business or regulatory requirements such as electronic money laundering monitoring system, investments in other systems including core banking, finance and accounting systems, credit evaluation system), as well as upgrades of existing systems particularly telecommunications system.

The budget also covers the expansion of the bank’s electronic banking channels, ATM installations, renovation or relocation or branch premises, and investments for new branches.

Security Bank spent P2.13 billion in 2021, 50 percent higher than the previous year’s P1.42 billion.

Almost half of the total amount or P917 million went to retail banking, followed by wholesale banking with P623 million.