Tuesday, 3 October 2023

UnionDigital Bank secures $16.18 million capital to accelerate digital loan growth

5 min read

UnionDigital Bank (UD) secured a capital infusion approval of up to PHP 900 million ($16.18 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 API, 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.

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

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 seven million customer base and ecosystem of services.

Mike Singh, chief commercial and revenue officer, UnionDigital Bank, said: “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. 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.

Re-disseminated by The Asian Banker

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