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March 05, 2024

Union Bank fuels digital ambitions with P1.8 billion infusion

Union Bank of the Philippines, owned by the Aboitiz family, is injecting fresh capital into its digital banking subsidiary to bolster its expansion efforts.

According to a regulatory filing, UnionBank plans to infuse up to P1.8 billion in additional capital into UnionDigital Bank Inc.

This capital injection aims to support the ongoing business operations of UnionDigital Bank and facilitate sustainable growth.

UnionDigital Bank is committed to advancing financial inclusion by enhancing credit access in underserved communities. Leveraging technology and leveraging decades of alternative data from the UnionBank ecosystem, the bank aims to develop robust credit models tailored to the Philippines.

In just the initial four months of operations in the country, UnionDigital Bank has achieved significant milestones, acquiring 1.73 million customers, reaching a loan book size of $70 million, and accumulating $50 million in deposits.