Complement not compete: Digital, traditional banks

The evolution of the banking industry is tilted towards the digitalization wave where most of the financial services are available online but assessments on the demise of the brick-and-mortar institutions are greatly exaggerated, to quote American writer, Mark Twain.

Security Banking Corporation (Security Bank) is one of the universal lending institutions that aim to become the country’s top “customer-centric” bank amid the tectonic shift in the sector due to the entry of digital banks and e-wallets.

The rise of digital technologies, indeed, has shaped the ways consumers prefer to accomplish their banking transactions which must be fast and cost-efficient.

Instead of competing, Security Bank executive vice president and head of retail banking Rahul Rasal ensures that the company remains agile in providing financial services conveniently but also safely through business partnerships and data science from technology firms.

“We understand your lifestyle and bring you products which we think will benefit you at any point in your financial journey,” he said on DAILY TRIBUNE’s online show Straight Talk last Wednesday.

“Rather than see new players disrupting the industry, we look at the strengths of each player as complementing our services,” Rasal continued.

Since it started operating as a universal bank 30 years ago, Security Bank has been offering a range of financial products, including basic deposits, personal and business loans, insurance, investment funds, trust services and asset management.

Aside from its physical branches, Security Bank extends basic banking through its app as it reaps benefits from its strong performance record.

“Traditional banks, which I would like to call universal banks, have built a customer base and customer trust. That is the most critical aspect digital banks also need,” Rasal said.

“Our app means customers can bank whenever they want and wherever they want,” he continued.

As an established bank, Rasal said Security Bank can easily gauge customers’ additional needs and financial capacities throughout their lifetimes.

“We have developed an understanding of customer needs and so traditional banks have a strength in product construct,” he added.

Universal means steady banking

With their various customer segments ranging from stable income earners to corporations, Rasal said universal banks ensure steady flows of capital to the market. “Universal banks bring in the warrants.”

With its drive to constantly satisfy customer needs, Rasal said Security Bank has adopted data science and digital tools developed by technology experts.

“Fintechs [financial technology firms] have shown agility. They bring in new technologies and the ability to gather new prospects or customers,” he said.

In supporting the government’s goal for financial inclusion, Rasal said digital banks have rolled out products suited to the most financially underserved groups in the country, while Security Bank ensures its client base remains loyal.

“Each player has its role. If you look at the customer journey, it’s about deepening relationships with the customers in simple transactions like credit cards, for example,” he said.

Security Bank has partnered with e-commerce platform Lazada to cater to credit cardholders seeking unique products and rewards for purchases.

“Lazada sees the value we bring to them because of the quality of customers of Security Bank. Based on data from CCAP (Credit Card Association of the Philippines) regarding spend per credit card spending, we are in the top three,” Rasal said.

“There could be special benefits and extra rewards points only available to Security Bank clients,” he stressed.

The bank’s credit card business has expanded by 60 percent as of June compared to the year-ago level, while home loans grew by 21 percent, and auto loans by 50 percent.

Using data science or analytics, Rasal said Security Bank can quickly design products based on customers’ spending behaviors.

“We don’t wait for you to tell us what you want. We’re analyzing data patterns and the needs you will have. Once you’ve been onboarded, we’ll be constantly offering a set of products that will allow you to make us your one-stop financial shop,” he said.

“Our digital development platforms ensure that your experience is seamless and almost instantaneous,” Rasal added.

Security Bank also teamed up with Mitsubishi Motors to operate its financing company Mitsubishi Motors Finance Philippines starting next year.

“Mitsubishi has been in the Philippine market for 60 years and they’re looking to grow their presence. They are second in this market,” Rasal said.

In a disclosure to the Philippine Stock Exchange in April, Security Bank said the new auto financing company will offer more attractive promos, competitive packages, and fast decision-making process to the bank’s clients.

Cybersecurity must be strengthened

Rasal said Security Bank continues to create educational activities, such as webinars, for clients so they can avoid being scammed, such as being manipulated by fraudsters into sharing their one-time PIN or OTP to complete banking transactions.

“OTP is only sent to the customer’s registered mobile number with the bank. But if you hand over your OTP to someone else, there’s nothing we can do about it. That’s why we develop education programs,” he said.

“Security Bank will never call you to ask for your OTP,” Rasal stressed.

He added that the bank uses digital and data tools to constantly monitor customer transactions, detect patterns of interactions, and stop suspicious transactions.

“Nobody can swipe their cards a hundred times in one minute. The data technology can trigger the communication to the customer on whether he or she is really making those transactions. Tell us and we can stop it,” Rasal said.