3 March 2023
Bangkok (3 March 2023) –
Krungsri (Bank of Ayudhya PCL) is set to further grow consumer finance business in the Philippines through SB Finance Company Inc. (SB Finance), a joint venture of Krungsri and Security Bank Corporation (SBC), a leading bank in the country. Krungsri also invites Thai companies to join its
“Go ASEAN with krungsri” initiative as the Thai bank reinforces its position as a
“Regional Bank”.
Mr. Phonganant Thanattrai, Krungsri Head of Retail and Consumer Banking
Mr. Phonganant Thanattrai, Krungsri Head of Retail and Consumer Banking, said: “Krungsri has continuously pursued expansion in ASEAN for a strong foundation under our quest to become a regional bank. In the Philippines, Krungsri is working with SB Finance Company, Inc. (SBF), a joint venture of Krungsri and Security Bank Corporation (SBC), to develop and deliver quality consumer loan products in the country. The Philippines has more than 111 million population, being the 12th most population nation in the world. Its GDP is expected to grow by 6.0-8.0% on average during 2023-2028, chiefly due to brisk domestic consumption driven by overseas Filipino workers’ remittances. The country is also home to a rising business, Business Process Outsourcing that involves Call Center and IT Services. The business shows high growth potential, given the good English language skill and yet low wage as well as the government’s supports in terms of tax incentives and infrastructure. The Philippines is thus an interesting market with various business opportunities.”
Philippines’ growth potential and opportunities
- More than 100 infrastructure projects involving airports, public transport systems, etc. under the “Build, Better, More” policy, expected to boost the economy through huge investment and job creation.
- Strong exports performance with high growth rate particularly electronics and other industrial goods.
- Post-COVID-19 tourism recovery.
Driven by the growth opportunities, SBC’s expertise in the Filipino market and Krungsri’s leadership in Thailand’s consumer finance segment, the joint venture has enjoyed strengths in terms of marketing, distribution channels and risk management. Various loan products have been launched in support of Filipinos’ individual success stories. Since Krungsri’s acquisition of a 50% stake in SBF in October 2020, the joint venture’s outstanding loans have expanded 38% and the customer base has doubled. Among Krungsri’s products introduced to the market are Installment Loans (Hoologan), Motorcycle Loans (MotorsikLOAN), Car Loans (Car4Cash) and Personal Loans. In 2021, “Zuki”, a mobile application, was launched for a better consumer experience and easier, faster and more convenience access to financial services. In 2022, Corporate employee loan and Salary Advanced Loan service (eSALAD) were launched for private companies’ employees, along with a Insurance Bundling. The distribution channel was expanded to encompass motorcycle dealers and retail shops that provide installment loans.
“Despite overall economic improvement, the Philippines encounters some challenges related to a spike in interest rates and inflation. In this regard, Krungsri is ready to capitalize on its consumer performance strength in support of SBF’s business expansion in the Filipino market. Meanwhile, by leveraging on MUFG’s network and expertise, Krungsri foresees stronger international cooperation and greater opportunities for its customers’ regional expansion. For instance, MUFG network can support business talks between Thai and ASEAN entrepreneurs along with business matching, international settlements, and financial solutions to enable smooth overseas operations for the customers. As their partner, Krungsri can provide them with an integrated set of information, knowledge, and financial advice under the goal to become
“the No.1 Thai financial institution in consumers’ minds that stands ready to connect the demands of all consumers across ASEAN”,” Mr. Phonganant concluded.