Union Bank of the Philippines led by bankero Edwin Bautista is pumping in as much as P2 billion in additional equity to its soon to be launched digital banking arm.
The Board of Directors of the Aboitiz-led bank approved the capital infusion to UnionDigital Bank Inc. that was one of the six entities granted digital banking licenses by the Bangko Sentral ng Pilipinas (BSP).
UnionDigital Bank is set to be launched in the second half of the year after
receiving the approval of its Articles of Incorporation and By-Laws from the Securities and Exchange Commission (SEC) last November.
Digital banks, unlike brick and mortar banks, have no physical branches. Their financial products and services are processed end-to-end through a digital platform or electronic channel.
Aside from offering traditional savings and time deposit accounts, digital banks are also improve the access of micro, small, and medium enterprises (MSMEs) to credit through mobile-friendly lending and investment facilities.
Aside from UnionDigital Bank, the Monetary Board has also approved the digital bank applications of UNO Digital Bank headed by banker Manish Bhai, GoTyme headed by bankero Jojo Malolos, PLDT’s Maya Bank headed by bankero Angelo Madrid, Landbank’s Overseas Filipino (OF) Bank led by bankero Leila Martin, and Tonik Bank of bankero Long Pineda.
Under its Digital Payments Transformation Roadmap, the BSP aims to digitalize at least half of financial transactions in the country and onboard at least 70 percent of Filipino adults into the formal financial system by 2023.