UnionDigital Banks 1.73M Customers in Four Months, Onboards PDAX as First Business Account Customer – Manila Bulletin
UnionDigital Bank, the digital banking subsidiary of Union Bank of the Philippines, today announced the acquisition of 1.73-M customers, reached US DOLLARS$ 70-M in the size of the loan book, and collection US$50-M in deposits from its first four months of operations in the country. UnionDigital Bank has achieved double-digit growth in digital lending to mass market communities through ecosystem partnerships powered by UnionBank.
“Since our launch, UnionDigital Bank has focused on meeting the needs of underserved communities within UnionBank by offering digital deposit and lending products to our ecosystem, and we will continue to meet the needs of these customers with additional products over time,” Arvie shared. de Vera, Co-Founder, President and CEO, UnionDigital Bank. “The series of milestones we have been able to achieve is a testament to the strong execution power of the team, in line with our community-driven business model.”
de Vera further attributes this success to digital banking’s “laser focus” on the fundamentals: prioritizing the balance sheet.
“As a bank, we’re very clear: it’s not just about having a cool app or millions of users that don’t generate revenue, it’s about a balance sheet. It is grow the loan portfolio because that’s where the revenue comes from – it doesn’t come from payments, it doesn’t come from signups. The valuation is excellent, but the profitability is not.
As a subsidiary of the Philippines’ largest tech glomerate, UnionDigital Bank’s success in growing its loan portfolio is due in part to its sophisticated use of available consumer behavior data within the Aboitiz ecosystem more broad to create tailor-made loan products.
“If you’re lending within an ecosystem, you have an anchor community, and that’s a solid way to extend credit because you have more data. Rather than using payment data, which really aren’t a good indicator of someone’s ability and willingness to pay, but if you have a solid set of data with context on their financial behavior, you can properly assess the risk, because you have historical customer data, you know you can give them a personalized interest rate. One-size-fits-all pricing is an inappropriate lending business strategy and a suboptimal customer experience.”
UnionDigital Bank’s mission to drive financial inclusion begins with improving access to credit for underserved communities by capitalizing on technology and decades of alternative data from the UnionBank ecosystem to create credit models hardy suitable for the Philippines.
In another significant milestone, UnionDigital Bank has onboarded its first corporate account customer, Philippine Digital Asset Exchange (PDAX), marking the start of the accumulation of corporate account openings at UnionDigital Bank. After PDAX, UnionDigital Bank aims to expand its partnership base with other leading communities and businesses, after its commercial launch.
Starting with PDAX, UnionDigital Bank has expanded its partnership base with other leading communities and businesses. UnionDigital Bank seeks to provide a seamless customer experience for businesses to make payments, transfer money and even more basic banking services such as treasury services, enabling businesses to do more with their financial assets.
“Corporate partnerships are key to helping us reach the communities that need it most. They are an integral part of the cohesive network the bank seeks to build and I believe their involvement is key to achieving a fully digital Philippines,” said de Vera. “With this in mind, the start we’ve had with PDAX joining us on our journey confirms my excitement to include more business partners. We look forward to collaborating with partners of the same caliber to maximize the difference we make to financial lives. of our fellow Filipinos.”
The PDAX business account partnership demonstrates how UnionDigital Bank is committed to being accessible to fintechs and regulated institutions by offering products relevant to them, their community and their partners.
“We believe that UnionDigital Bank offers the banking solutions that digital natives like PDAX need to continually grow,” said Nichel Gaba, Founder and CEO of PDAX.
UnionDigital Bank dares to make bold strides that drive direct changes in the way Filipinos interact with their finances digitally. A local fintech expert, PDAX, being the first digital banking client is a great start to kick things off, continuing our rally to support our higher goal of Tech-ing Up Philippines.
The UnionDigital Bank app is now available for a limited number of customers. For now, the application is currently available by invitation only. Future updates on the launch will be available through the Digital Banking social media channels on LinkedIn, Twitterand Facebook.
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