Union Digital Bank (UD), a subsidiary of Union Bank of the Philippines, obtained a capital infusion approval of up to P900 million from their parent bank. This additional capital will accelerate UD’s expansion, especially in the area of digital loans, which will soon be launched within the UD app.
With this capital boost, UD aims to expand its digital loan offerings through its app and APIs, facilitating faster credit access and a seamless loan application process for customers. The capital infusion is still subject to regulatory approval from Central Bank of the Philippines (BSP).
“This approved funding shows UnionBank’s confidence in our strategic growth plan and strong financial performance. We will use this capital to drive our growth and improve our ability to meet financial needs. to our customers,” said Henry Sharp, 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 aim to help and include in the financial system.”
UD also achieved net income in the first quarter of 2023, driven by an ecosystem-led business model. In addition, digital banking’s study of embedded finance opens up new avenues for customers to engage with banking services.
UD recently created partnerships with mWell, which enables embedded financial services for 1.5 million customers and 5,000 doctors and health professionals, as well as HUAWEI, which taps with their customer base of 7 million and their ecosystem of services.
“We have built a strong pipeline of partnerships and are actively growing our digital channels to diversify our deposit base and loan portfolio,” it confirmed. Mike Singh, Chief Commercial and Revenue Officer at UnionDigital Bank. “The approved capital will not only improve our financial stability but also open up many opportunities, especially in pushing our mission to improve 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 dedicated to promoting financial inclusion and uplifting communities one step at a time. With this commitment in mind, the digital bank aims to break down barriers that hinder individuals from accessing financial services, empowering Filipinos across the country to build a secure future.