UnionDigital Bank Receives P900-M Capital Infusion for Digital Loan Expansion

UnionDigital Bank (UD) has successfully secured approval for a capital infusion of up to PHP900 million from its parent bank, Union Bank of the Philippines, furthering the new digital bank’s aim for loan expansion to Filipinos.

With the new funds, the digital bank will have the capacity to expand and enhance the digital loan offerings available in the UD app and its APIs.

The capital infusion is still subject to regulatory approval from the Bangko Sentral ng Pilipinas (BSP), according to UD’s statement.

President and CEO of UnionDigital Bank Henry Aguda expressed his enthusiasm about the approved funding and highlighted the confidence it demonstrates in the bank’s strategic growth plan and strong financial performance.

“This approved funding indicates UnionBank’s confidence in our strategic growth plan and strong financial performance. We will use this to fuel our growth trajectory and allow us to better serve the financial needs of our customers,” Aguda said.

He added that the move speaks of UD’s commitment to the personal finance needs of its customers.

“Nearly 70% of our customer base comprise of individuals with limited means at the base of the income pyramid – these are the people we want to help and include in the financial system,” Aguda said.

Union Bank of the Philippines has been one of the catalysts in the country’s transition to digitalization, as their online banking app gained traction during the height of the COVID-19 pandemic, with users touting the app’s UI and user experience during that time.

Other banks soon followed suit, placing heavy emphasis on new visuals and ease of use on their own mobile banking apps.

UD also boasted record net profits in the first quarter of 2023 in their statement and doubles down on the momentum as the digital bank recently partnered with mWell and HUAWEI to further strengthen their market position, enabling the implementation of embedded financial services for millions of customers in the healthcare and technology sectors.

Chief Commercial and Revenue Officer of UnionDigital Bank Mike Singh shared the bank’s strategy of scaling up digital channels and fostering partnerships to diversify its deposit base and loan book.

“We have built a strong pipeline of partnerships and are actively scaling up our digital channels to help us diversify our deposit base and loan book,” Singh said, adding “the approved capital will not only improve our financial strength but also unlock a lot of opportunities, especially 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.” (GFB)