City Savings Bank (CitySavings) is set to go into bancassurance, offer more loan facilities while strengthening its flagship teachers’ salary loan product, and boost its presence in Metro Manila and other key cities in Luzon as it rationalizes its branch network after absorbing another thrift bank.
CitySavings will also further expand its mass market reach through a purchase agreement with Bangko Kabayan based in Batangas province in Luzon.
The bank just recently absorbed Philippine Resources (PR) Savings Bank and is rationalizing the combined branch network.
Paula Ruelan, CitySavings reputation management head, said there may be some areas where a PR Bank would be retained and transformed into a CitySavings branch because of the location or the size of the branch.
PR Savings started as a rural bank in Isabela province in Cagayan Valley. It was upgraded to a savings bank in 2011, with around 40 branches in key areas mostly in Luzon.
Under parent UnionBank’s Digital Transformation Roadmap - Transformation C+, CitySavings also intends to begin offering motorcycle loans, a popular product of PR Savings, as well as loans for pensioners, seafarers, and overseas Filipino workers (OFWs).
CitySavings is the thrift arm of publicly listed Union Bank of the Philippines, the banking and financial services unit of Aboitiz Equity Ventures, Inc (AEV).
In a statement, AEV said CitySavings will also improve operational efficiencies of acquired rural banks, and leverage on alternative credit scoring models through partnerships.
Meanwhile, the bank will venture this year into bancassurance with Insular Life.
Bancassurance is an arrangement that allows an insurance company to sell its products to a bank’s client base. (Ventures Cebu)