UnionDigital Bank (UD) has received a capital infusion approval of up to P900 million from their parent bank, Union Bank of the Philippines. This latest additional infusion will help drive the expansion of digital banking, especially digital loans that will soon be launched on the UD app.
This capital increase will enable UD to expand its digital loan offerings through its app and APIs, giving customers faster access to credit and a seamless loan application process. The capital infusion is still subject to Bangko Sentral ng Pilipinas (BSP) regulatory approval.
“This approved funding reflects UnionBank’s confidence in our strategic growth plan and strong financial performance. We will use it to fuel our growth and allow us to better serve the financial needs of our customers, “said Henry Aguda, President and CEO of UnionDigital Bank. “Almost 70% of our customer base consists 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.”
UD also recorded a net profit in the first quarter of 2023, driven by an ecosystem-led business model. Additionally, digital banking’s push toward embedded finance allows for new ways for customers to engage with banking services.
UD started this with their recent partnership with mWell, which implements embedded financial services for 1.5 million customers and 5,000 doctors and health professionals, as well as HUAWEI, which taps into their 7 million customer base and ecosystem of services.
“We have built a strong pipeline of partnerships and are actively growing our digital channels to help us diversify our deposit base and loan book,” said Mike Singh, Chief Commercial Officer. and Revenue Officer, UnionDigital Bank. “The approved capital will not only improve our financial stability but will also open many opportunities, especially to advance our mission of improving access to credit for every Filipino, regardless of their location. As we accelerate our digital loan offering, we will empower more Filipinos to achieve their financial dreams, wherever they are.”
UnionDigital Bank is on a mission to bring financial inclusion, uplifting one community at a time. With this in mind, the digital bank is committed to breaking down barriers that prevent individuals from accessing financial services, empowering Filipinos everywhere to build a secure future.