SB Finance highlights four key benefits collaboration can do for the Philippine financial industry

Abbie Casanova, SB Finance’s CEO, said finding the right partner can exponentially increase business fundamentals and market reach.

There are four key benefits to why collaboration and partnerships will help the financial industry thrive in the Philippines. Namely, it enhances accessibility to resources, helps increase customer base, offers regulatory advantage, and boosts innovation.

Speaking at the 2023 Asian Banking and Finance Forum in Manila, she delivered insightful perspectives, shedding light on SBF’s journey, and the pivotal role partnerships played in their remarkable growth. 

The young company, born during the pandemic, has thrived in a challenging environment, and received recognition for its achievements. 

Casanova's address, brimming with valuable insights, underscores the importance of strategic alliances, and adaptability in a rapidly evolving financial landscape. She traced back the journey of SB Finance, and how the synergy between Security Bank Corporation and Thailand’s Krungsri birthed a new, formidable force in the consumer finance industry.

ALSO READ: PH digital bank CEOs tout marketing, mindset, partnerships to disrupt banking

Why partnerships are beneficial
Casanova debunked the notion of "doing it alone", highlighting the competitive advantages and shared profits that stem from effective collaborations. 

Partnerships, she stressed, are integral to achieving the goals and objectives of both parties, especially in an increasingly interconnected world.

“Why do you have to partner? Why do you have to share the profits? But you see, there are benefits to that. And it really depends on the goal – the objective of your individual companies and the synergy that you aspire the partnership to bring” Casanova expressed.

Collaboration between financial services has several advantages.

Partnering with established financial institutions allow a healthy exchange of best practices and resources, giving startups the opportunity to innovate more efficiently. They can tap into the industry knowledge and resources of these firms, benefiting from their regulatory experience, infrastructure, and extensive customer networks. Each partner has something unique to offer, which the other may greatly benefit from.

ALSO READ: Philippines on track to meet digital payments goal: central bank 

Collaborating with traditional financial institutions helps ensure regulatory compliance, reducing the risk of legal and compliance issues while reaching a wide and more established customer base. This collaboration is vital for startups looking to grow and scale their businesses within the complex financial services sector. On the other hand, fintechs and incumbents players also have a lot to gain when they partner as fintechs offer innovation, newer technologies and speed to market that existing players need. 

Collaboration fosters innovation by bringing together diverse perspectives and ideas. Fintechs and startups, banks, regulatory authorities, and industry leaders can collaborate to identify new opportunities, and create solutions that address the evolving needs of customers in the ever-changing financial landscape. This synergy can lead to groundbreaking developments in the industry.

Framework
The CEO also outlined a comprehensive partnership framework, emphasizing the importance of aligning goals and objectives, transparent communication, and periodic evaluations. These elements ensure that partnerships remain focused, adaptable, and effective over time.

Adapting to the changing landscape aids partners to address challenges and obstacles head-on. Examples of existing barriers to reaching more clients entail regulatory hurdles, technological limitations, market competition, and resource constraints.

Casanova shared that their flexibility and constant alignment with partners allowed them to navigate issues and seize opportunities effectively. The key takeaway here is that the collaborators must identify their common goals, and a strong commitment to success must be shared among all stakeholders.