SINGAPORE—Four months after its commercial launch, the Aboitiz Group’s UnionDigital Bank Inc. (UDB) acquired 1.7 million customers with a portfolio of $50 million in deposits and $80 million in loan book size.
During an interview with reporters at the Singapore Fintech Festival, UDB Chief Revenue Officer Mark Singh described the first semester of commercial operations as “remarkable.”
Singh said the company is focusing on the “underserved” customers of UnionBank, offering them “tailored” digital solutions that were otherwise not available to them via traditional banking, including access to credit and lending.
“It’s a profitable business,” he told reporters.
He added that the group also intends to tap into the customer base of its partners, noting that UDB is “open to collaboration with different communities…not just with the bank, but with our partners like insurance companies.”
UDB Chief Product, Customer Experience and Operations Officer Maria Gaitanidou said the recent figures presented during the fintech festival are a “validation” of the group’s strategy.
“The most important thing is that this is a validation of the strategy that we adopted—our focus on communities,” Gaitanidou said.
She added that the group focuses on the “low hanging fruits” in banking, an opportunity that Singh said, is huge, citing data of the borrowing practices of Pinoys.
Seven out of 10 Filipinos borrow and five of those borrow from informal sources, Singh said, explaining the disadvantages related to tapping loan sharks for immediate funds.
Singh said the company is empowering those in the “lower brackets” to gain access to credit lines and loan facilities by leveraging data from their transactions with UnionBank.
A significant percentage of the current loan book of UDB is from existing UnionBank customers.
Corporate customer
UDB onboarded its first corporate account customer, Philippine Digital Asset Exchange (PDAX), marking the commencement of accumulating corporate account openings.
“Corporate partnerships are vital to helping us reach the communities who need it the most. They are integral to the cohesive network the bank seeks to build and I believe their involvement is critical to reaching a fully digital Philippines,” UDB President Ramon Vicente V. de Vera said.
“With this in mind, the start we’ve had with PDAX joining us on our journey affirms my excitement to include more corporate partners,” de Vera said. “We look forward to collaborating with partners of the same caliber to maximize the difference we bring to the financial lives of fellow Filipinos.”
The group is hopeful that it can grow its corporate customers after onboarding PDAX as its first client.
De Vera said they look to provide a customer experience for corporates to make payments and transfer money. He said they plan to offer core banking services such as treasury services.