Security Bank targets young depositors and retail market

CEBU, Philippines - Having established itself fully with corporate customers and wholesale banking, Security Bank now shifts focus towards the growing retail market segments and the potential of young depositors to drive growth.

"The retail market does not really know us [that well]. They're not aware of who the 'real' Security Bank is," said Ma. Cristina A. Tingson, the bank's senior vice president for retail and consumer banking.

In a press conference, Tingson said the bank has started its rebranding 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 rebranding strategy saying "We needed to re-brand to attract the retail market and reintroduce ourselves.

At present, 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.

Security Bank executive vice president Eduardo Olbes said the bank is bringing down the personal banking service to the mainstream, with a minimum average daily balance (ADB) of P100 thousand.

Traditionally, the personal banking service is only available to the big-ticket clientele. Today, Olbes said personal banking service can already be availed by the mass depositor base.

All the 244 branches of Security Bank nationwide are up for renovation, in line with its new banking culture. About 60 branches are due for renovation this year.

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.

In support of economic development, the bank's loans went to critical sectors of the economy such as power, utilities, infrastructure, wholesale and retail trade, food agriculture and consumer goods.           

Supported by the expansion in the bank's brand network which grew to 244 branches for both Security Bank and Security Bank Savings, its deposits grew by 45 percent to P206 billion, faster than the banking industry's 33 percent growth rate.                 The growth in business volumes resulted in the 34 percent growth of the Bank's total assets to P348 billion, as of end of 2013. (FREEMAN)