In its April 14, 2021 release, Moody’s Investors Service said the cash management deal between Security Bank Corporation and MUFG Bank, Ltd (MUFG) is credit positive for Security Bank. 

According to Moody’s, 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. Furthermore, the partnership also provides opportunities for Security Bank to expand its client base for cross-selling to MUFG’s corporate clients, adds Moody’s. 

Security Bank recently announced that it has closed a deal with its global partner MUFG that will allow MUFG’s corporate clients to gain access to the bank’s cash management system, DigiBanker. The agreement aims to provide MUFG’s clients with product and services that are suited to the domestic front while complementing its current product offerings.

In a virtual signing ceremony held on March 18, 2021, Security Bank President and CEO Sanjiv Vohra and MUFG Country Head for the Philippines Yuichi Yamagishi formalized the agreement between the two banks. 

“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,” says Mr. Vohra.