UnionDigital Bank (UD), a subsidiary of Union Bank of the Philippines, has obtained a capital infusion approval of up to P900 million from its parent bank. This additional capital will fuel the expansion of UD, particularly in the area of digital loans, which will soon be launched within the UD app.
With this capital boost, UD aims to broaden its digital loan offerings through its app and APIs, facilitating faster credit access and a seamless loan application process for customers. The capital infusion is still subject to regulatory approval from the Bangko Sentral ng Pilipinas (BSP).
“This approved funding demonstrates UnionBank’s confidence in our strategic growth plan and strong financial performance. We will utilize this capital to propel our growth trajectory and enhance our ability to meet the financial needs of our customers,” stated Henry Aguda, President and CEO of UnionDigital Bank. “Nearly 70% of our customer base consists of individuals with limited means at the base of the income pyramid – these are the people we aim to assist and include in the financial system.”
UD has also achieved net profits in the first quarter of 2023, driven by its ecosystem-led business model. Furthermore, the digital bank’s focus on embedded finance opens up new avenues for customers to engage with banking services.
UD has recently forged partnerships with mWell, enabling embedded financial services for its 1.5 million customers and 5,000 doctors and health professionals, as well as with HUAWEI, tapping into their customer base of 7 million and their ecosystem of services.
“We have established a strong pipeline of partnerships and are actively scaling up our digital channels to diversify our deposit base and loan portfolio,” affirmed Mike Singh, Chief Commercial and Revenue Officer of UnionDigital Bank. “The approved capital will not only enhance our financial strength but also unlock numerous opportunities, particularly in driving our mission to improve access to credit for every Filipino, regardless of their location. As we accelerate our digital loan offerings, we will empower more Filipinos to achieve their financial aspirations, wherever they may be.”
UnionDigital Bank is dedicated to promoting financial inclusion and uplifting communities one step at a time. With this commitment in mind, the digital bank aims to break down barriers that hinder individuals from accessing financial services, empowering Filipinos nationwide to build a secure future.
