UnionDigital Bank, the digital arm of UnionBank of the Philippines, is set to launch a high-frequency lending product in 2024, allowing users to configure tenors through their app.
Bankero, UnionDigital President and CEO Henry Aguda expressed the intent to cater to day-to-day financial needs, particularly in the gig economy.
Aguda, speaking at the Singapore Fintech Festival, emphasized the need for faster turnarounds, stating that the product, expected in Q2 or H2 of next year, will offer flexibility, starting with a 30-day minimum but no prepayment penalty.
UnionDigital aims to adjust repayment schedules from monthly to weekly, eventually aspiring for daily loans. The loans will be risk-priced slightly above credit card rates, with interest rates dynamically changing based on individual risk assessments using Artificial Intelligence (AI).
UnionDigital plans to infuse additional capital to support this initiative, with Chief Commercial and Revenue Officer Mike Singh anticipating a doubling or tripling of the bank’s loan portfolio.
The bank is also gearing up to launch a product aimed at streamlining processing for micro-, small-, and medium-sized enterprises (MSMEs), aligning with its vision for automated, faceless, paperless, and same-day approval processes.
UnionDigital, which was granted a digital banking license by the Bangko Sentral ng Pilipinas in July 2021 and operational since July 2022, currently reports an outstanding loan balance of at least P12 billion.