Security Bank to double loans to MSMEs in Philippines

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Listed Security Bank Corp. aims to double its lending to micro, small, and medium enterprises (MSMEs) as it launched a business banking segment to focus on the sector.

In a press conference, Security Bank president and CEO Sanjiv Vohra said the bank recognizes that MSMEs are a vital sector of the Philippine economy with a great potential for growth.

'We realized, however, MSMEs lacked the support to thrive as pandemic restrictions eased and the economic recovery picked up,' Vohra said.

Vohra said the newest customer segment would be dedicated to supporting Filipino MSMEs.

'We understand that running a successful business requires a solid financial foundation and a dependable partner who not only listens to the specific needs of small businesses, but also commits to providing comprehensive solutions that fit their requirements,' he said.

John David Yap, senior vice president and business banking segment head at Security Bank, said the bank aims to extend much needed support to the priority segment that comprises 99.5 percent of business firms in the Philippines, 65 percent of total jobs, and 40 percent of domestic output as measured by the gross domestic product (GDP).

'We will continue to innovate to meet the needs of MSMEs, transform the lending journey with faster turnaround times, develop new product bundles, and optimize interactions through digital channels,' he said.

According to Yap, Security Bank projects to double the loan bookings for MSMEs with the launch of the business banking segment focusing on the sector.

'For the target volume for 2023, we're looking to double what we did in 2022,' he said.

The bank aims to grow its lending business by high single digit level this year after a 12-percent increase to P503 billion last year from P467 billion in 2021. The bank's deposits also increased by 16 percent to P606 billion from P524 billion.

Yap said that the business banking segment aims to contribute about 30 to 40 percent of the projected lending growth this year.

The segment hopes to capture 20 percent of MSMEs in the next three to five years.

Through the new segment, Security Bank will provide its clients relevant products such as the Business Plus that offers affordable checking account that comes with free access to management platform Digibanker as well as business insurance in partnership with FWD.