|
GE launches banking presence in RP
(Philippine Daily Inquirer Via Thomson Dialog NewsEdge) AMERICAN CONGLOMERATE General Electric is bullish on banking opportunities in the Philippines, the first Asian country where it acquired a banking institution that it launched yesterday as GE Money Bank.
GE Consumer Finance bought out the 30-branch Keppel Monte Bank from Singapores Keppel group for about P1.45 billion in December last year and rebranded the lender as GE Money Bank.
The Philippines is a big bang waiting to happen, said GE Money Philippines president and CEO Ben Kua, noting that the local market was poised for greater growth.
Kua said GE could leverage on its global expertise to reach out to the countrys underserved market segment--particularly the small and medium enterprises and the consumer market--while remaining as a thrift bank. He projected that domestic profits and business volume would likely grow by more than 10 percent a year.
The country has a very young population and their demand for innovative financial products and services is substantial. We are aggressively spending for growth to respond to this need, he said.
GE is spending $1 million this year to boost the thrift banks infrastructure and technology platform. Its lending portfolio is currently focused on SMEs, mortgage and auto finance, but it plans to make inroads into other consumer businesses such as personal loans and credit cards.
We believe in the Philippines. We believe this will grow much bigger than where it is now, said Mark Toohey, chief finance officer for GE Money Asia, who noted that the bank was also open to further acquisition opportunities.
With operations in 47 countries and a solid footprint in Asia, the Philippines will serve as a strategic cornerstone of GE Moneys Southeast Asian strategy, Toohey said.
Kua noted that GEs rosy outlook on the country was due to improved economic fundamentals, as indicated by a recent upgrade by global credit rating agency Standard & Poors on its outlook on sovereign credit rating from negative to stable.
Overseas remittances are coming in, driving consumption, and economic reforms help sustain long-term economic growth, Kua said.
He added that the business sector had also grown indifferent to political hiccups.
GE Money Bank, which employs 350 people in the Philippines, plans to grow in this market by investing in technology to drive transactional and online banking, offering best-in-market services in the area of fast turnaround time and customer service and investing in operating platforms to bring speed and convenience.
[ Back To TMCnet.com's Homepage ]
|
INDUSTRIES
Activate Email 
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO East, January 20-22, 2010. Miami, FL.
