UnionBank Injects PHP 900 Million Capital into UnionDigital Bankby Fintech News Philippines July 10, 2023
UnionDigital Bank (UD), the digital banking subsidiary of Union Bank of the Philippines, has secured PHP 900 million (US$ 16.2 million) from its parent bank. The capital infusion is still subject to Bangko Sentral ng Pilipinas’ (BSP) regulatory approval.
The digital bank said that the latest additional infusion will help drive the digital bank’s expansion, particularly in digital loans which will soon be launched in the UD app.
This will enable UD to expand its digital loan offerings via its app and APIs, providing customers with faster access to credit and a seamless loan application process.
UD reported that it had recorded net profits in the first quarter of 2023, driven by its ecosystem-led business model.
The digital bank formed partnerships with mWell, implementing embedded financial services for its 1.5 million customers and 5,000 doctors and health professionals, as well as HUAWEI, tapping into their 7 million customer base and ecosystem of services.
“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.
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.”
said Henry Aguda, President and CEO of UnionDigital Bank.
“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.
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.”
said Mike Singh, Chief Commercial and Revenue Officer, UnionDigital Bank.