Unionbank to Acquire Digital Bank License

Aboitiz-owned Union Bank of the Philippines (UnionBank) is eyeing for a digital bank license to support its agenda for financial inclusion.

With the Bangko Sentral ng Pilipinas (BSP) looking to set a new bank category soon, UnionBank chief financial officer Jose Emmanuel Hilado said that they may apple for a separate license for a specific purpose even as the bank already functions as a digital bank after years of digital transformation.

Unionbank currently offers clients a way to open an account and do transactions such as fund transfers, check deposits, and buying and selling of foreign exchange using only their mobile app.

Hilado also added that Unionbank is already in a good position to function as a digital bank.

“We’ve addressed most of the pain points for clients, which is the reason why digital banks have started coming up, right? So in our case, we think that we are already in a good position. We feel that we are a digital bank but if we do pursue a separate license, it will be for a specific purpose,” the bank officer added.

Unionbank ended the third quarter of 2020 with over 1.5 million digital customers, higher than the 1 million digital customers during the second quarter of 2020, according to their statement.

335,000 digital accounts of the total were also opened through the bank’s mobile app.

The bank’s mobile app also gained massive usage as transactions rose to 3.6 million for September alone compared to figures from January 2020, a rise of more than three times.

While the coronavirus pandemic continues to be a factor in the growth of digital transactions in the Philippines, Unionbank reiterated its commitment to the digital platform for the future.

“We are confident that UnionBank will remain firm in its commitment to meet the needs of its clients not only during this time of crisis, but in the years to come,” Hilado said. (GFB)