Security Bank rationalizes branches in digital push

By Karl Angelo N. Vidal, Reporter
SECURITY BANK Corp. is easing its branch expansion as it rationalizes its existing network amid its digitalization push.
Alfonso L. Salcedo, Jr., Security Bank president and chief executive officer, said the bank will open less branches this year as it rationalizes its offices in favor of its growing its digital presence.
“We’re slowing down this year because what we have been focusing on is rationalizing our existing branches,” Mr. Salcedo told reporters in a chance interview last week.
“In simple words, we’ve been relocating or putting our branches in the right places,” he added, noting that it will open “less than five branches” this year.
“[We’re putting up] maybe less than five [branches] because we’re focused on growing our digital platform,” Mr. Salcedo said, adding that pushing for digital banking is a more efficient way to distribute products.
Abigail Marie D. Casanova, consumer business and operations group head at Security Bank, explained that opening more offices to reach more clients might not be as effective as it was generations before.
“Looking at the digital nature of the upcoming generation, the brick and mortar model may not be as effective as it was maybe one or two generations ago,” Ms. Casanova told BusinessWorld in an interview on Thursday.
The lender added that it will continue to place basic transactions into its digital platforms in order for its branches to handle more complex banking transactions.
“That’s what the thrust is — not exactly to pepper the country with branches, but more to drive people into digital,” Ms. Casanova added, while noting that pushing for digital banking will enable the bank to reach more clients in the far-flung areas in the country.
“That would be a game changer because far-flung areas can be reached without putting massive infrastructure for the bank.”
Currently, Ms. Casanova said, Security Bank’s individual clients are able to access their bank accounts, transfer funds and apply for loans through mobile and online platforms.
Security Bank’s net income stood at P2.35 billion in the first quarter, down 16.6% due to lower trading gains.
Shares in the bank declined P4 or 1.94% to close at P202 apiece on Thursday.