The cash management deal between Security Bank Corp. and MUFG Bank, Ltd is a credit positive for Security Bank, according to Moody’s Investors Service.
In a statement on Monday, Security Bank said that according to Moody’s release last April 14, “the expanded partnership between the two banks will encourage increased business flow and help Security Bank broaden its corporate client base to MUFG’s customers while credit demand in the Philippines is subdued.”
Moody’s added that the cash management initiative with MUFG will increase Security Bank’s low-cost corporate deposits, which will reduce its funding costs. Security Bank could also benefit from fee income through ancillary services such as overseas transfers and settlements.
The partnership would also provide opportunities for Security Bank to expand its client base for cross-selling to MUFG’s corporate clients, Moody’s added.
Security Bank earlier announced that it has closed a deal with its global partner MUFG that will allow the latter’s corporate clients to gain access to the bank’s cash management system, DigiBanker.
The agreement aims to provide MUFG’s clients with products and services that are suited to the domestic front while complementing its current product offerings.
Security Bank President and Chief Executive Officer Sanjiv Vohra and MUFG Country head for the Philippines Yuichi Yamagishi formalized the agreement between the two banks on March 18, 2021.
“We are honored to be entering into a cash management partnership agreement with MUFG. With this, MUFG’s corporate clients will gain access to the full range of Security Bank’s cash management portfolio. Our partnership is an incredible opportunity for us to take the best of Security Bank and MUFG and raise the bar for financial service excellence in the region,” said Vohra.