Thailand’s Bank of Ayudhya, commonly known as Krungsri, has acquired a 50% stake in Security Bank’s consumer finance subsidiary in the Philippines, SB Finance.
The move has received the regulatory approvals in the Philippines and Thailand. Financial details of the deal were not divulged.
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The partners will offer customer-centric digital lending experience to all Filipinos and small business owners.
Security Bank president and CEO Sanjiv Vohra said: “The closing of this transaction comes at a very opportune time. This strategic partnership with Bank of Ayudhya will help rebuild consumer confidence and enhance financial inclusion at this time of the Covid-19 pandemic.
“We are confident that by leveraging on Krungsri’s strength in the ASEAN retail finance market and in consumer risk management, we can contribute meaningfully to the economic recovery of the Philippines.”
Japan’s MUFG Bank is a common shareholder of Krungsri and Security Bank.
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By GlobalDataBack in 2016, MUFG acquired a 20% stake in Security Bank, which enabled the latter to access the global markets, beyond local borders.
The latest partnership is expected to bolster the x`loan products of SB Finance in the country’s unsecured lending space.
Various tailored loan products will be offered to the personal and small business customers in the Philippines.
Last month, Krungsri’s consolidated subsidiary and microfinance institution Hattha Kaksekar (HKL) received commercial banking licence in Cambodia.
