UnionDigital Bank (UD) secured a capital infusion approval of up to P900 million from its parent bank, Union Bank of the Philippines (UnionBank). The fresh funds is earmarked for the digital bank’s expansion.
This capital boost will enable UD to expand its digital loan offerings via its app and APIs, providing customers with faster access to credit and seamless loan application process. The capital infusion is still subject to Bangko Sentral ng Pilipinas (BSP) regulatory approval.
“We will use this to fuel our growth trajectory and allow us to better serve the financial needs of our customers,” said Henry Aguda, president and CEO of UnionDigital Bank. “Nearly 70% of our customer base comprise of individuals with limited means at the base of the income pyramid – these are the people we want to help and include in the financial system.”
UD also recorded net profits in the first quarter of 2023, driven by its ecosystem-led business model. The digital bank’s push towards embedded finance enables new avenues for customers to engage with banking services.
UD kickstarted this with recent partnerships with mWell, implementing embedded financial services for its 1.5 million customers and 5,000 doctors and health professionals, as well as Huawei, tapping into its 7 million customer base and ecosystem of services.
“The approved capital will not only improve our financial strength but also unlock a lot of opportunities, especially in driving our mission to improve access to credit for every Filipino, regardless of their location,” said Mike Singh, chief commercial and revenue officer, UnionDigital Bank.