UnionDigital Bank Leads the Pack in Digital Banking, Emerges as ‘Best Digital Bank in The Philippines’

MANILA, PHILIPPINES – In a period defined by technological innovation and digital transformation, UnionDigital Bank, the digital bank subsidiary of Union Bank of the Philippines, emerged as a leader in digital banking as it secured the distinguished title of the ‘Best Digital Bank in The Philippines’. Honored by the esteemed Global Excellence in Retail Finance Awards 2024, an award-giving body in the industry led by TAB Global, this achievement underscores UnionDigital Bank's relentless pursuit of innovation and its dedication to providing cutting-edge digital banking solutions. 

In 2023, UnionDigital Bank witnessed a remarkable surge in its balance sheet, observing an increase in both deposits and loans, more than doubling its previous performance. As of December 2023, the bank had attained a substantial 65% market share in loan portfolio size, while in deposit, it ranked second among digital banks with a commendable 25% share. Within the period, the bank's loan-to-deposit ratio surged from 58% at the end of 2022 to a noteworthy 69%, surpassing that of its digital banking counterparts in the country. 

This period marked a significant milestone as UnionDigital Bank achieved profitability in 2023, showcasing extraordinary growth with revenue soaring by 13 times, totaling over PHP 5 billion. The bank’s latest accolade as the ‘Best Digital Bank in The Philippines’ is a testament to its exceptional growth trajectory and enhanced profitability. 

"Being acknowledged as the 'Best Digital Bank in The Philippines’ confirms UnionDigital Bank's dedication to pioneering innovation and delivering exceptional value to our customers. This honor mirrors the hard work and dedication of our team in setting new benchmarks for digital banking and continuously striving to lead the industry into the future," said Henry Aguda, CEO of UnionDigital Bank. 

UnionDigital Bank, since its inception as the digital bank subsidiary of Union Bank of the Philippines, has been a trailblazer in the digital banking landscape, constantly pushing boundaries and redefining industry benchmarks. Through strategic collaborations with key partners such as digital healthcare platform mWell, ride-hailing Angkas, and Malaysian airline firm Capital A, UnionDigital Bank has reinforced its commitment to innovation and customer-centric services. 

"As we continue to solidify our position as a rapidly profitable digital bank in the Philippines, the recognition by The Asian Banker underscores our ongoing commitment to excellence and innovation in the industry. This distinction serves as an encouragement for us to further our efforts in promoting financial inclusion, enhancing our financial services, and cementing our role as a key contributor to the digital banking sector," commented Aguda.

UnionDigital Bank named Best Digital-Only Bank at The Asian Banker Excellence in Retail Financial Services and Technology Innovation Philippines Awards 2023

L-R: Christian Kapfer, Research Director, The Asian Banker; Ron Puno, Chief Transformation and Technology Officer, UnionDigital Bank; and Wilson Chia, International Resource Director, The Asian Banker

UnionDigital Bank, the digital bank subsidiary of Union Bank of the Philippines, was recently awarded as the "Best Digital-Only Bank" at The Asian Banker Excellence in Retail Financial Services and Technology Innovation Philippines Awards 2023. The recognition was a testament to UnionDigital's exceptional performance, underpinned by its robust fintech capabilities, strong support from the Bangko Sentral ng Pilipinas (BSP), and extensive partnerships within its ultimate parent company Aboitiz Group's dynamic ecosystem.

UnionDigital Bank also won the Best Digital Lending Service Award from the The Digital Banker: World Digital Bank Awards 2023 last May.

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About UnionDigital Bank:

UnionDigital Bank is a digital bank entity wholly owned by UnionBank of the Philippines. We are a Bangko Sentral ng Pilipinas (BSP) licensed digital bank committed to financial inclusion and creating positive impact on the lives of every Filipino, everywhere. As part of the larger Aboitiz Group, we harness our ecosystem, leverage on its expertise, and work collaboratively to achieve our dream of a financially inclusive Philippines.

Our mission is clear - we strive to provide accessible and personalized banking services, products, and financial knowledge to every Filipino, no matter where they are in the world. As a fully digital bank, we aim to empower our customers with the tools and resources they need to achieve their financial goals and truly uplift their lives. Learn more at www.uniondigitalbank.io.

UnionDigital Bank Wins Profitability Race in PH Digital Banking

MANILA, PHILIPPINES – UnionDigital Bank, the digital bank subsidiary of Union Bank of the Philippines, is one of the fastest digital banks in the world to achieve profitability. It attained a triple-digit percentage growth in its net income during the first half of 2023 compared to the second half of 2022. The Aboitiz Group-led digital bank, which recently marked its first-year milestone in July, attributed this to the robust loan portfolio growth via the UnionBank ecosystem. 

“We are grateful to be one of the six Philippine digital banks that are committed to making a difference in the lives of all Filipinos by empowering them to pursue their aspirations. The commitment and hard work of our Ka-UBEHs in UnionDigital and UnionBank have pushed us to become one of the fastest digital banks in the world to achieve profitability,” said Henry Aguda, President and CEO, UnionDigital Bank. “This milestone is not just UnionDigital's win, but a collective victory that should be celebrated by the entire Digital Banking Association of the Philippines (DBAP) family as it affirms the world class innovation of the Philippine digital banking industry.  Philippine banking is ready for the global stage.”

“We are grateful to be one of the six Philippine digital banks that are committed to making a difference in the lives of all Filipinos by empowering them to pursue their aspirations. The commitment and hard work of our Ka-UBEHs in UnionDigital and UnionBank have pushed us to become one of the fastest digital banks in the world to achieve profitability,” said Henry Aguda, President and CEO, UnionDigital Bank. “This milestone is not just UnionDigital's win, but a collective victory that should be celebrated by the entire Digital Banking Association of the Philippines (DBAP) family as it affirms the world class innovation of the Philippine digital banking industry.  Philippine banking is ready for the global stage.”

The Bangko Sentral ng Pilipinas (BSP) has endorsed the establishment of the DBAP, an initiative aimed at addressing the immediate priorities necessary for the prosperity and success of digital banks in the Philippines.

"As we emerge as the fastest to profit digital bank in the Philippines, the endorsement of the DBAP by the BSP is testament to the strong support of our regulator to the future of this industry. This initiative not only reflects our commitment to innovation but also reaffirms the BSP's dedication to the growth and prosperity of PH digital banks. Together, we're shaping a dynamic future for the industry,” added Aguda.

The digital bank’s deposits also saw a 113% surge, amounting to PHP 20 billion, which is 32% of the market share among digital banks. Its loan portfolio has grown to PHP 13 billion, notching a 126% upswing. The company shared that it had captured a substantial 75% of the market share for loans within the digital banking industry as of May 2023.

 

UnionDigital’s stellar performance, backed by its strong fintech capability, support of the BSP, and deep linkages with the ecosystem of the Aboitiz Group, was recognized at The Asian Banker Excellence in Retail Financial Services and Technology Innovation Philippines Awards 2023, where the company won the "Best Digital-Only Bank" award.

 

TABInsights, the research arm of TAB Global and a sister company of The Asian Banker, also ranked UnionDigital Bank as number 58 in the Global Top 100 Digital-Only Bank Ranking 2023, which features only two digital banks from the Philippines. The ranking evaluates digital banks based on customer service, market coverage, profitability, asset and deposit growth, and funding.

"Receiving this honor from The Asian Banker is a privilege we hold in high regard. This award is not solely ours to claim; we extend this to our fellow digital bank counterparts, 

our parent, UnionBank, and the BSP, all united by a common objective – uplifting the lives of Filipinos through financial inclusion,” shared Aguda. “This recognition reflects our joint dedication and commitment to reshape the financial landscape for the better. It underscores the importance of working together and pursuing common goals to drive our nation’s progress and prosperity.”

UnionDigital Bank has recently signed partnerships with different key players in diverse industries to launch its embedded banking services. 

“We have built a strong pipeline of partnerships and are also scaling up our retail app to help us diversify our deposit base,” said Mike Singh, Chief Commercial and Revenue Officer, UnionDigital Bank. “Our focus remains on giving access to essential financial services to the underserved such as micro, small, and medium enterprises (MSMEs), and overseas Filipino workers (OFWs) through upcoming products in our app.”

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About UnionDigital Bank:

UnionDigital Bank is a digital bank entity wholly owned by UnionBank of the Philippines. We are a Bangko Sentral ng Pilipinas (BSP) licensed digital bank committed to financial inclusion and creating positive impact on the lives of every Filipino, everywhere. As part of the larger Aboitiz Group, we harness our ecosystem, leverage on its expertise, and work collaboratively to achieve our dream of a financially inclusive Philippines.

Our mission is clear - we strive to provide accessible and personalized banking services, products, and financial knowledge to every Filipino, no matter where they are in the world. As a fully digital bank, we aim to empower our customers with the tools and resources they need to achieve their financial goals and truly uplift their lives.

Learn more at www.uniondigitalbank.io.

UnionDigital Bank Poised to Accelerate Growth in Digital Loans with P 900-M Capital Approval from UnionBank

MANILA, PHILIPPINES—UnionDigital Bank (UD) secured a capital infusion approval of up to P900 million from its parent bank, Union Bank of the Philippines. This 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 capital boost 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. The capital infusion is still subject to Bangko Sentral ng Pilipinas (BSP) regulatory approval.

“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,” said Henry Aguda, President and CEO of UnionDigital Bank. “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.”

UD also recorded net profits in the first quarter of 2023, driven by its ecosystem-led business model. Moreover, the digital bank’s push towards embedded finance enables new avenues for customers to engage with banking services.

UD kickstarted this with their recent 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.

“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,” said Mike Singh, Chief Commercial and Revenue Officer, UnionDigital Bank. “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.”

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 break down barriers that prevent individuals from accessing financial services, empowering Filipinos everywhere to build a secure future.


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About UnionDigital Bank:

UnionDigital Bank is a digital bank entity wholly owned by UnionBank of the Philippines. We are a Bangko Sentral ng Pilipinas (BSP) licensed digital bank committed to financial inclusion and creating positive impact on the lives of every Filipino, everywhere. As part of the larger Aboitiz Group, we weaponize our ecosystem, leverage on its expertise, and work collaboratively to achieve our dream of a financially inclusive Philippines.

Our mission is clear - we strive to provide accessible and personalized banking services, products, and financial knowledge to every Filipino, no matter where they are in the world. As a fully digital bank, we aim to empower our customers with the tools and resources they need to achieve their financial goals and truly uplift their lives.

Learn more at www.uniondigitalbank.io.