Technology-first, digital-only bank hits major milestone in just four months of operation. This is something that would take traditional financial institutions years to achieve.
“In the first four months of launch, [in July 222], achieved P2.5 billion in deposits and P4 billion in loans. Such tremendous growth in such a short period of time is due to the foundation of financial technology. By offering low-cost services, we offer our customers better rates than traditional banks and fintech hybrids. Our immediate goal is to continue to grow our loans and deposits,” said the founder, president and chief executive of his Union Digital Bank, a subsidiary of Union Bank of the Philippines and part of Aboitiz Tech Glomerate. His managing director, Arvie de Vera, said:
“In the long term, we aim to improve access to financial technology and increase the ability of Filipinos to obtain loans, open bank accounts, send and receive remittances,” said de Vera. said in an email interview.
According to him, killer apps seem to be at the top of everyone’s list, but UnionDigital Bank believes that the underlying technology behind basic banking functions like savings and loans is the first and most important. I understand that it is a step.
“Our aim is to enhance these basic functions and ensure accessibility to the wider Filipino community,” he said.
Prior to leading UnionDigital Bank, de Vera founded UnionBank’s Financial Technology Group in 2016, becoming the industry’s first pioneer in blockchain use cases. He also advocates for open finance through UnionBank’s award-winning global API marketplace, UnionBank’s fintech, where he led the initiative that led to the creation of UBX, and serves on the board and investment committee. .
De Vera’s exposure to banking, marketing and media helped him see an opportunity in the rise of fintech, the fusion of technology startups and banking. “My journey started in digital banking by choosing to partner with and help develop these promising young fintechs,” he says.
“Aspiring digital bankers need to embrace change and value collaboration. It’s the surest way to find out,” he says.
De Vera positions UnionDigital Bank as the next frontier for technological advancement in banking in the Philippines. “We believe this is the fastest and surest path to improving the quality of life for all Filipinos. But to achieve that in the Philippines, we need to find the right way to implement these innovations within the Filipino context,” he says.
“That is why we founded UnionDigital Bank with the mission to bring these implementations to life. Most banks today recognize the need, but they come from a traditional banking background. We have been catching up by gradually upgrading components of our operations,” he says.
While some banks are trying to become part technology companies, UnionDigital is unique in that it has already been a technology company since its inception, he said. “This kind of technology-first, digital-only bank is a necessary evolution to bring about the change we want in the financial and technology standards of the Philippines,” he said. “Ultimately, banking has to be embedded and open. I don’t think that’s the way it is today.Instead, banking should be seamlessly integrated into all the services people use every day.The future of banking lies in technology and data. These allow banking to become the embedded service it should be,” says de Vera.