Security Bank to use tech to boost car, home loans
SECURITY Bank Corp. expects its car and home loans to grow faster this year as it leverages technology and as the Philippine economy continues to rebound.
“We’ve had experience over the last two years and we’re also making certain technological changes like bringing in applications and developing better systems,” Rahul S. Rasal, Security Bank senior vice-president and Retail Banking Segment head, told reporters on Monday.
The lender seeks to double auto loans and expand its housing loan portfolio by as much as 20%, he added.
Security Bank auto loans grew by 30% last year, while home loans increased by 40%, Mr. Rasal said. Its total loans stood at P502.21 billion at the end of September, according to its financial statement.
“Our auto loans, home loans and credit cards have grown very heavily in 2023 from 2022,” he said. “The difference this year is how we’re going to use technology.”
Security Bank seeks to improve loan processing and will soon upgrade its mobile app to boost customer service and attract more clients, he said.
Mr. Rasal said the bank would focus on app stability and security, which are what customers are looking for based on a market study.
Aside from improving user experience, the lender might also add features to the app including an investment function, Mr. Rasal said.
“Today, retail investors are all doing it in-app,” he said. “That is a fact. Our app will be a one-stop shop for all financial needs. It will be for onboarding customers, transaction convenience, as well as for new products. Investments will be part of that.”
Mr. Rasal said the bank’s lending growth would not be easily affected by macroeconomic factors such as inflation or interest rates given the demographics of its clients.
“The market will respond to certain macroeconomic factors but the market that we cater to is substantially more resilient because our segment is the mass affluent,” he said. “We only talk to customers at a certain income level, which makes them protected from market ups and downs.”
Security Bank’s net income rose by 14.7% year on year to P2.65 billion in the third quarter. Its shares were unchanged at P73 each. — Aaron Michael C. Sy
