SINGAPORE—Four months after its commercial launch, Aboitiz Group’s UnionDigital Bank Inc. (UDB) has acquired 1.7 million customers with a $50 million deposit portfolio and $80 million loan portfolio.
In an interview with reporters at the Singapore Fintech Festival, UDB Chief Revenue Officer Mark Singh called the first half of business operations “remarkable”.
Singh said the company is focusing on UnionBank’s “underserved” customers, offering them “tailor-made” digital solutions not otherwise available to them through traditional banking services, including access to credit and to loans.
“It’s a profitable business,” he told reporters.
He added that the group also intends to tap into its partners’ customer base, noting that UDB is “open to collaborating with different communities…not just with the bank, but with our partners such as companies. insurance”.
Maria Gaitanidou, Chief Product, Customer Experience and Operations Officer at UDB, said the recent figures presented at 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 have adopted – our focus on communities,” Gaitanidou said.
She added that the group is focused on “low-hanging fruit” in banking, an opportunity that Singh says is huge, citing data on Pinoy borrowing practices.
Seven out of 10 Filipinos borrow and five of them borrow from informal sources, Singh said, explaining the disadvantages of relying on loan sharks for immediate funds.
Singh said the company enables “lower tranches” to access lines of credit and loan facilities by mining data from their transactions with UnionBank.
A significant percentage of UDB’s current loan portfolio comes from existing UnionBank customers.
UDB has onboarded its first corporate account client, Philippine Digital Asset Exchange (PDAX), marking the start of the accumulation of corporate account openings.
“Corporate partnerships are key to helping us reach the communities that need it most. They are an integral part of the cohesive network the bank seeks to build and I believe their involvement is key to achieving a fully digital Philippines,” said UDB President Ramon Vicente V. de Vera.
“With that in mind, the start we’ve had with PDAX joining us on our journey confirms my excitement to include more business partners,” de Vera said. “We look forward to collaborating with partners of the same caliber to maximize the difference we make to the financial lives of our fellow Filipinos.”
The group hopes to be able to develop its business clientele after having integrated PDAX as its first client.
De Vera said they were looking to provide a customer experience for businesses to make payments and transfer money. He said they plan to offer basic banking services such as cash services.