Friday, 19 July 2024

UnionDigital Bank partnership with Aboitiz sets new benchmark for customer acquisition

5 min read

By Genivi Factao

UnionDigital Bank named Best Digital-Only Bank and UnionBank of the Philippines Most Recommended Retail Bank for seamless internet and mobile banking services, and high customer ratings

UnionDigital Bank was recognised as the Best Digital-Only Bank at the Finance Philippines 2023 Summit.  The bank demonstrated stronger growth, better stability and more innovative products than its peers.  

In 2022, it acquired 1.7 million customers, averaging some 314,000 new customers per month. It also reported a strong balance-sheet with a 67% loan-to-deposit ratio, PHP 9.2 billion ($170 million) in deposits and $231 million (PHP 12.6 billion) in assets. It uses its deposits more effectively compared to other digital banks. 

The latest feather in UnionDigital’s cap is a strategic partnership with subsidiaries of Aboitiz Group. This collaboration amplifies its ability to access the group’s ecosystem to deliver innovative and digital-centric lending products and services to customers.

L to R: Chris Kapfer, Research Director; Ronaldo Jose Puno, Chief Technology and Transformation Officer, UnionDigital; Wilson Chia, International Resource Director, TAB

Parent bank UnionBank of the Philippines’ array of financial products garnered a resounding vote of confidence from satisfied customers, making it the Most Recommended Retail Bank in the Philippines, with a BankQuality™ Score of 67%, the highest among all commercial banks here. 

Consumers lauded the bank’s convenient, easy-to-use internet and mobile banking services, as well as good customer service via phone banking. Consumers were highly satisfied with their competitive loan product offerings, highlighting minimal fees and extra savings on charges they enjoy with this bank. UnionBank’s continuous digital innovation and quality service give Filipino customers confidence, affirming its role as a beacon of financial stability and reliability. 

GCash, a trailblazing super-app, has captured the hearts and wallets of Filipinos, earning it the title of Best SuperApp and Platform.   

GCash had 76 million registered users in 2022 and it’s leading the market in user growth, with an average of two million users per month in 2022. Its ability to continue to attract and retain a large customer base solidified its position in the market in the first quarter of 2023. This platform showcases exceptional user engagement and activity levels. It had a gross transaction value of PHP 6 trillion ($110 billion) in 2022, and a year-on-year (YoY) growth rate of 58%. 

Filipino consumers voted this super-app as their most recommended platform, giving it a BankQuality™ score of 76%. With a double unicorn status and valuation exceeding $2 billion, GCash is one of the highest-valued financial platforms in the Philippines. It was lauded for its  strong market presence, diverse financial offering, and high investor confidence.

L to R: Chris Kapfer, Research Director; Ren Reyes, CEO of G-Xchange Inc.(GCash); Wilson Chia, International Resource Director, TAB

Maya, an all-in-one money app, clinched accolades for Best Merchant Service and Best Digital Brand Campaign. 

Maya’s integrated offering streamlines transactions for both merchants and customers, enhancing efficiency and user experience. With over 880,000 merchant touchpoints as of March 2023, this is one of the top merchant acquirers in the Philippines. Reporting 384% growth from June 2021 to June 2022, this business app has over 640,000 registered business owners, the majority being micro and small businesses.

In total, this app has served over 29 million customers and accumulated 48% of 2022 Visa transactions. It has nationwide coverage for merchant touchpoints, reaching millions of Filipinos, fostering financial inclusivity, and nurturing merchant growth. 

Maya continues to innovate its existing products and services to meet evolving consumer needs. It recorded 650,000 user registrations and PHP 5 billion ($92 million) deposit balance in just three  months from its launch—relatively high compared to its competitors. 

One million engagements were recorded on various social media platforms, recording a 4.8 rating on the App Store and a 4.7 rating on Google Play Store. Maya was recognised for having high volumes of engagement, and a positive business impact.

Maya Bank, the digital bank, was recognised for Best Digital Deposit in the Philippines. It has a 360-degree deposit account that offers customers a holistic experience via its mobile app. It is the fastest-growing deposit institution in the country to date. Deposits reached PHP 21 billion ($386 million) as of March 2023. It was cited for its positive net interest margin on deposits, innovative deposits and savings solutions, and high customer satisfaction.

L to R: Chris Kapfer, Research Director; Angelo Madrid, President, Maya Bank; Julie Reyes, Chief Risk and Compliance Officer, Maya; Wilson Chia, International Resource Director, TAB

The award for Best Digital Consumer Lending went to SB Finance, a partnership between Security Bank and Krungsri Bank. SB has shown consistent growth in its consumer lending portfolio, with a compound growth rate of 26%. It provides various types of personal loans such as Hooloogan and eSALAD, via an online-offline distribution journey, and on its mobile app Zuki. The institution recorded a net interest margin of over 25%, with a credit cost of only 10%. 

This consumer finance business maintained strong portfolio quality. It has expanded geographically, particularly in the Visayas-Mindanao regions that contributed over 30% to the portfolio. SB was recognised for its focus on innovation in customer onboarding, product offerings, and commitment to responsible lending.

L to R: Chris Kapfer, Research Director, TAB; Anna Liza Disini, Head of Marketing and Corporate Communications, SB Finance; Mikal Rallonza, Head of Sales and Distribution for Consumer Finance, SB Finance; Lovely Nenette Galang, Head of Sales and Distribution for Auto Finance, SB Finance; Abbie Casanova, President and CEO, SB Finance; Jasmin Gaa, Head of Corporate Employee Loans, SB Finance; Wilson Chia, International Resource Director, TAB

EastWest Bank’s JCB Credit Card secured the award for Best Credit Card. The credit card has shown impressive figures, averaging 2,666 cards issued monthly, and a total of 24,006 cards issued from October 2022 to June 2023. It accounted for 23% of all new customers acquired by the bank during this period.

The card contributed 3.4% to the bank’s total credit card billing, even though it represented only 2.1% of the bank’s entire card base. It has introduced notable innovations tailored for lifestyle-focused consumers. With a special emphasis on travel-related benefits and an integrated chatbot service, a commendable 42% of its credit card users use the chatbot for their daily transactions. The product features strong innovation, a promising revenue stream, and high customer acquisition.

L to R: Chris Kapfer, Research Director, Aylwin Tamayo – SVP and Head, Credit Cards and Business Governance, EWB; Jacqueline S. Fernandez, EastWest President; Lawrence Lee, EVP and Consumer Lending Head, EWB; TAB; Wilson Chia, International Resource Director, TAB

Bank of the Philippine Islands was selected as the Most Selected Main Bank in the country by 20% of the bankable population here. 

Customers chose the bank for its diverse products and convenient services. It has a customer base of over nine million. Digital customers grew 50% YoY in 2022. It operates more than 870 physical branches and 2,000 teller machines nationwide, ensuring accessibility for consumers. 

L to R: Chris Kapfer, Research Director; BPI Executives: Marwin Galve, SVP, Head of Northern Metro Manila, Jose Mari Gasa, VP of Head of South Luzon; Geraldine ALCUAZ, AVP, Head of Affluent Segment; Glenda Gonzales, VP, Head of Shared Services; Olga Ang, SVP, Head of Branch Stores Channel; Ma. Cristina Go, EVP of Consumer Banking Head; Dennis Fronda, SVP, Head of Retail Lending and Bancassurance; Ana Liza Sta Ana, SVP, Head of Southern Metro Manila; Maya SAMPANG, VP, Head of North Luzon; Wilson Chia, International Resource Director, TAB

The awards were presented at The Asian Banker’s Finance Philippines 2023 Summit held in Makati City last 16 August.

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