Union Bank of the Philippines (UnionBank) is cutting jobs at its digital subsidiaries, UnionDigital Bank and UBX, as it prepares to fold both into the parent bank, InsiderPH reported.

UnionBank did not say how many employees are affected, stressing that the changes apply to the subsidiaries rather than its main banking operations.

In a statement on 28 October, the bank said the integration “will involve organisational changes, including adjustments to workforce requirements.”

UnionBank said it is supporting affected staff, including helping them explore openings across the wider Aboitiz Group.

“Many actually have outstanding offers already,” it added.

Part of the Planned Integration

The job cuts follow UnionBank’s announcement that it would integrate UnionDigital and UBX into its main operations, subject to approval from the Bangko Sentral ng Pilipinas (BSP).

At the time, the bank said UnionDigital customers could keep using their accounts and app without interruption.

UnionDigital, one of the country’s original six licensed digital banks, began commercial operations in 2022. UnionBank set up UBX to develop financial technology beyond traditional banking.

Losses at the Digital Bank

UnionDigital had built up PHP 9.4 billion in capital stock but accumulated a PHP 5.64 billion deficit by June 2026, BSP data cited by InsiderPH showed.

Its loan book grew to PHP 6.7 billion from PHP 4.3 billion in March, and its bad-loan ratio improved to 21.39% from 29.51%. Problem loans nevertheless remain elevated.

UnionBank approved a PHP 1.3 billion capital infusion into UnionDigital last December, releasing PHP 400 million in January and PHP 100 million in July, according to bank records reviewed by InsiderPH.

The cuts come even as UnionBank’s nine-month net income rose 53% to PHP 9.9 billion, with the bank placing greater emphasis on costs and profitability.

Featured image: Edited by Fintech News Philippines based on an image by diana-grytsku via Magnific.