Aboitiz-led Union Bank of the Philippines is tripling its investment in its digital banking subsidiary ahead of its planned commercial debut this year.
UnionBank said in a stock exchange filing on Monday that its board had approved the additional equity infusion of P2 billion into UnionDigital Bank Inc. or UnionDigital.
This comes on top of a P1-billion share subscription in UnionDigital last year.
The subsidiary, in July 2021, was among six companies granted a digital banking license by the Bangko Sentral ng Pilipinas.
UnionBank earlier announced that UnionDigital would be commercially operational by the second half of 2022.
“It will be the bank’s foray to penetrate the larger untapped retail segment in the country in a purely digital and cost-effective manner,” UnionBank said in its annual report.
UnionDigital will be the fourth digital bank to operate after Land Bank of the Philippines’ Overseas Filipino Bank, Tonik Bank and Maya Bank, whose investors include PLDT Inc. and International Finance Corp.
New category of lenders Other licensees planning to launch this year are Uno Digital Bank and Gokongwei-led Gotyme.
Digital banks are a new category of lenders created by the BSP to reach the vast majority of Filipinos without a bank account. The distinct license allows them to provide a host of financial services that regular banks provide, including savings and loans, but without having a physical branch network since business is conducted online.
—Miguel R. Camus INQ
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