CEBU, Philippines — Known as the “teachers’ bank”, Aboitiz-led thrift bank CitySavings is expanding its lending focus to include the broad mass market.
“Our goal now is to become the leading mass market bank,” announced CitySavings reputation management head Paula Ruelan.
While maintaining its foothold to meet the teachers’ loan demand, Ruelan said CitySavings, the thrift arm of UnionBank, is beginning to penetrate the mainstream lending market such as offering motorcycle loans and loans for pensioners, seafarers, and overseas Filipino workers.
CitySaving’s confidence to immediately tap the thick mass market is anchored by its recent mergers and acquisitions (M&As).
CitySavings finalized its merger and acquisition of Isabela-based PR Savings Bank in February 2019, with the former as the surviving entity.
PR Savings Bank’s strength is on motorcycle, agri-machinery, and teachers’ salary loans, serving over 131,000 borrowers mostly from the mass market segments.
CitySavings will also expand its mass market coverage through the purchase agreement with Bangko Kabayan which allows them to deepen its foundation in the microfinance sub-sector. CitySavings has also acquired 49 percent of Progressive Bank Inc. a rural bank in Iloilo that has served the province for more than four decades.
It also acquired the First-Agro Industrial Rural Bank Inc. a rural bank based in Bogo City Cebu.