UnionDigital Bank (UD) has received approval from its parent bank, Union Bank of the Philippines, for a capital infusion of up to PHP 900 million. This funding will support UD’s expansion, specifically in the area of digital loans, soon to be available in the UD app.
The capital boost will help UD enhance its loan offerings, providing customers with faster credit access and a seamless application process. Although, the approval is still subject to clearance from the Bangko Sentral ng Pilipinas (BSP).
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 comprises 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.”
UnionDigital Bank has already achieved net profits in the first quarter of 2023, driven by its ecosystem-led business model. The digital bank has also entered into partnerships with mWell and HUAWEI, expanding its customer base and offering embedded financial 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 bookThe 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.” Said Mike Signh, Chief Commercial and Revenue Officer of UnionDigital Bank.
UnionDigital Bank is dedicated to promoting financial inclusion and empowering communities by removing obstacles to financial services, enabling Filipinos nationwide to create a stable and prosperous future.
