UnionDigital Banks 1.73-M Customers in Four Months, Onboards PDAX as First Corporate Account Customer
UnionDigital Bank,
the digital banking subsidiary of Union Bank of
the Philippines, today announced that it has acquired 1.73-M customers, reached US$ 70-M in loan book size, and collected
US$ 50-M in deposits from its first
four months of operations in the country. UnionDigital Bank has achieved double
digit growth in digital loans to mass market communities through ecosystem
partnerships powered by UnionBank.
“Since our
launch, UnionDigital Bank has been focusing on serving the needs of the
underserved communities within UnionBank by offering digital deposit and
lending products to our ecosystem, and we will continue to support the needs of
these customers with additional products overtime,” shared Arvie de Vera,
co-founder, President, and CEO, UnionDigital Bank. “The series of milestones
that we have been able to achieve is a testament to the strong execution power
of the team, in accordance with our community-led business model.”
de Vera
further credits this achievement to the Digital Bank’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
who don’t generate revenue - it’s about a balance sheet. It’s about growing
the loan book because that’s where the revenues come from- it doesn’t come
from payments, it doesn’t come from sign ups. Valuation is great, but it’s not profitability.”
As a
subsidiary of the Philippine’s largest techglomerate, UnionDigital Bank’s
success in growing its loan book is due in part to its sophisticated use of
available data of consumer behavior within the larger Aboitiz ecosystem to
create tailor-fit loan products.
“If you’re lending within an ecosystem,
you have an anchor community, and that’s a robust way to provide credit because
you have more data. Rather than using payments data, which is really not a good proxy for someone’s capacity
and willingness to pay. But if you have robust set of data with context on
their financial behavior, then you can properly price the risk, because
you have historical data on the customer, you know you can give him a
customized interest rate. A one-size-fits-all pricing is an inappropriate
lending business strategy and sub-optimal consumer experience.”
UnionDigital
Bank’s mission to drive financial inclusion begins with improving access to
credit to the underserved communities by capitalizing on technology and decades
of alternative data from the UnionBank ecosystem to create robust credit models
that fit the Philippines.
In yet
another milestone, UnionDigital Bank onboarded its first corporate account
customer, Philippine Digital Asset Exchange
(PDAX), marking the commencement of accumulating corporate account openings at
UnionDigital Bank. Following PDAX, UnionDigital Bank aims to expand its
partnership base with other leading communities and corporates, following its
commercial launch.
Starting with PDAX, UnionDigital Bank has been
expanding its partnership base with other leading communities and corporations.
UnionDigital Bank looks to provide a smooth customer experience for corporates
to make payments, transfer money, and even more core banking services such as
treasury services, empowering businesses to do more with their financial
assets.
"Corporate
partnerships are vital to helping us reach the communities who need it the
most. They are integral to the cohesive network the bank seeks to build and I
believe their involvement is critical to reaching a fully digital Philippines," said de Vera. "With
this in mind, the start we’ve had with PDAX joining us on our journey affirms
my excitement to include more corporate partners. We look forward to
collaborating with partners of the same caliber to maximize the difference we
bring to the financial lives of fellow Filipinos.”
The
PDAX corporate account partnership demonstrates how UnionDigital Bank is
committed to being approachable to fintechs and regulated institutions by
offering products relevant to them, their community, and partners.
“We
are confident that UnionDigital Bank offers the banking solutions that digital
natives, such as PDAX, need to continuously
grow,” said Nichel Gaba, Founder & CEO, PDAX.
UnionDigital
Bank dares to make bold strides that result in direct changes to how Filipinos
interact with their finances digitally. A homegrown fintech expert, PDAX, being
the digital bank’s first customer is a good start to kick things off,
continuing our rally to support our higher purpose of Tech-ing Up Philippines.
The
UnionDigital Bank app is now live for a limited set of customers. For now, the
app is currently available by invitation only. Future updates on the launch
will be available through the digital bank’s social media channels on LinkedIn, Twitter,
and
Facebook.
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