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May 27, 2024

UnionDigital Bank starts commercial operations after BSP nod

Union Bank of the Philippines headed by bankero Edwin Bautista started its commercial operations last July 18 after completing the three-step application process of the Bangko Sentral ng Pilipinas (BSP).

UnionBank’s wholly owned UnionDigital Bank Inc. started its operations after receiving its Authority to Operate from the regulator last July 12.

In July last year, the central bank awarded UnionDigital Bank with a digital banking license and became the only digital bank established by a universal bank among the six licensees approved by the regulator.

In November, the Securities and Exchange Commission (SEC) approved the Articles of Incorporation and By-Laws of UnionDigital Bank. As part of its incorporation, UnionBank subscribed to 100 million new common shares of UnionDigital Bank at a par value of P10 per share amounting to P1 billion.

The Board of Directors of UnionBank last month approved a P2 billion capital infusion to UnionDigital Bank.

Aside from UnionDigital Bank, the central bank’s Monetary Board has also granted digital bank licenses to UNO Digital Bank, GoTyme of the Gokongwei Group and Tyme, Maya Bank of the PLDT Group, Overseas Filipino (OF) Bank of state-run Land Bank of the Philippines, and Tonik Bank.