Security Bank elevated retail banking through digitalisation and fintech collaboration

Rahul Rasal, head of retail banking at Security Bank, discussed his mission to bolster the bank’s growth in retail banking and prepare for a digital, open-banking future. Rasal assumed his role during the height of the pandemic in 2021.

Security Bank ranks as the 10th largest retail bank in the Philippines by total assets, boasting a consumer loan portfolio of PHP 121 billion ($2.15 billion) and retail deposits amounting to PHP 350 billion ($6.21 billion). From 2020 to 2022, the bank’s retail revenue grew at a compound annual growth rate of 4%.

The bank has commenced on a year-long transformation, prioritising the digitalisation of its front-end processes, which includes electronic know-your-customer (eKYC), and the introduction of a new loan origination system. This will be followed by the establishment of a unified digital platform.

Rahul pointed to strategic levers to concentrate on: seamless customer onboarding and service fulfillment, and dedicated customer support. The bank is on track to improve its loan origination system that will soon be integrated into the new platform. Rahul believes that Security Bank’s growth is intertwined with the construction of an open-banking stack, which will facilitate collaborations with major fintech entities.

He emphasised the significance of collaboration between traditional banks, fintechs and platforms, aimed at capitalising on strengths and enhance the customer banking experience.

He said: “Traditional banks and fintechs can collaborate to cultivate a customer-centric ecosystem. While fintechs act as agile front ends, traditional banks can utilise their underwriting and risk management prowess. This collaborative mindset can spur innovation and amplify customer trust in the evolving financial milieu.”

Rahul believes that eKYC in the Philippines is revolutionising customer onboarding and underwriting, and enabling mid-sized banks to compete more effectively. The KYC functionality facilitates customer identification and verification procedures, promising a more frictionless and secure onboarding experience for new-to-bank customers.

Security Bank’s goal is to leverage telco behavior and social data, aiming for holistic credit profiling, and making accurate lending decisions for individuals with limited credit history.