SB Finance, the consumer finance arm of Security Bank, has carved a distinctive space in the Philippine lending market through a targeted strategy addressing underserved working-class Filipinos. At the heart of this effort are two flagship initiatives; MotorsikLOAN, a flagship loan product tailored for gig workers and two-wheel motorists in need of financing, and a financial literacy campaign that features tailored financial literacy sessions with the Philippines’ ‘Financial Beshie ng Bayan’, Salve Duplito. SB Finance President and CEO Abbie Dans-Casanova elaborated on the impact and rationale behind both. Purpose-built motorcycle financing with digital and human touch MotorsikLOAN is SB Finance’s tailored lending solution for self-employed individuals, informal businesses, and blue-collar workers who rely on motorcycles for everyday service and income, and regular business operations. Designed with mobility and livelihood in mind, the product offers fast, accessible financing with a unique hybrid approach that merges digital application channels with face-to-face support at dealership outlets. This ensures borrowers receive both speed and guidance — key to building trust among the underserved, credit-invisible segments. “We actually have two mobile apps — zukì and zac (zukì agent companion),” Casanova explained. “zukì is for customers; zac supports our sales agents, many of whom are embedded in dealerships. It's a hybrid approach because Filipino customers still prefer that human guidance when making a purchase as significant as a motorcycle.” Applications can be processed and approved in as short as 24 hours. Once approved, dealers coordinate with borrowers for loan finalisation and disbursement, often enabling same-day vehicle release. The end-to-end process is digitally powered, but key touchpoints — such as verification and contract signing — retain physical interaction for regulatory compliance and fraud prevention. Casanova stressed that the company performs field visits to verify borrower legitimacy. “We require a 100% physical address check, even if we also rely on billing statements. That is important in mitigating fraud, especially identity fraud and misrepresentations.” SB Finance outsources both collections and field verification, helping balance operational efficiency and reach. Despite targeting a high-risk market, the company reports strong asset quality. “Our non-performing loan (NPL) is below 5%, compared to the industry’s 16%,” she noted. “We are also quite picky. Our approval rate is just around 40% — less than half of what in-house dealer financing typically approves.” MotorsikLOAN now accounts for 10% of the company’s total portfolio and is its fastest-growing loan segment, with over PHP 1 billion (about $17.9 million) in assets. It also acts as a springboard for other offerings, such as insurance and potential follow-on products like “motorcycle for cash,” a cash loan against paid-off bikes. To sustain MotorsikLOAN’s growth and improve brand trust in second-hand financing, SB Finance also launched ‘Tambike sa SB Finance in 2024’. This marketing-led initiative turns repossessed unit sales into community events, featuring sealed bidding, on-ground activations, and influencer engagement. By transforming the repossession process into a more transparent and approachable experience, Tambike helps extend mobility access to more borrowers while reinforcing the MotorsikLOAN product promise. Leveraging telco data and digital underwriting for financial access To extend credit to thin-file customers with limited or no borrowing history, SB Finance employs alternative data strategies. “We use telco scores heavily,” Casanova shared. “These customers often don’t have traditional credit files, so telco usage data helps us assess creditworthiness.” The company integrates scores directly from major telecom providers, ensuring compliance with data privacy laws through explicit customer consent. The telco score is then back-tested for predictive accuracy using internal modelling. SB Finance also contributes data to the Credit Information Corporation (CIC) and supplements it with insights from private credit bureaus like TransUnion. However, for many of their target borrowers — new to credit and outside the formal banking sector — telco data remains the most actionable source. Financial literacy as a tool for customer protection and industry leadership Beyond credit access, SB Finance is investing in financial literacy and responsible borrowing through its financial literacy campaign. The initiative partnered with a television anchor-turned-social media influencer who serves as a relatable financial educator or “beshie” — slang for best friend. The partnership led to the production of the ‘Utang Manual’, a guide to better debt management, as well as a series of talks on financial education. “The campaign is about giving people the right information to make the right decisions,” Casanova explained. “Borrowing is easy here, but without education, it can lead to over-indebtedness.” The campaign was rolled out in phases; first, internally to employees, then to business partners’ employees, especially in companies where SB Finance offers salary loans. The firm is now embedding literacy content directly into its loan application platforms, including pre-loan “health warnings” on repayment terms and interest rates. “We want customers to really understand what they’re getting into,” she said. “This is our version of truth in lending, but made accessible and friendly.” The digital campaign has amassed over 10 million impressions and 6 million video views, complemented by on-the-ground activations. While awareness and engagement are high, the firm is now working on tracking conversion metrics and the correlation between financial education and loan performance. Timing is also strategic. SB Finance intensifies its education efforts toward the end of the year — months traditionally associated with higher loan delinquency. “We know from experience that loans originated in November, December and January have higher default risk,” Casanova said. “So that is when we push our financial literacy content harder.” Responsible growth and evolving revenue streams SB Finance’s focus on the working-class segment remains both socially motivated and commercially sustainable. The company turned profitable after the pandemic and continues to see growing traction in its loan and insurance cross-sell business. Non-interest income from insurance commissions and processing fees now contribute nearly 8% of its top line. The company plans to expand responsibly. “We could grow much faster if we loosened controls,” Casanova acknowledged. “But we prioritise quality and sustainable returns over volume.” This philosophy underpins both the MotorsikLOAN lending strategies and financial literacy campaigns — tools for not just accessing new markets, but uplifting them.
