UnionDigital Bank said Wednesday it secured a capital infusion approval of up to P900 million from parent Union Bank of the Philippines.
It said the latest infusion would help drive the digital bank’s expansion, particularly in digital loans which would soon be launched in the UD app.
The capital boost will enable UD to expand its digital loan offerings via its app and APIs, providing customers with faster access to credit and a seamless loan application process. The capital infusion is subject to the Bangko Sentral ng Pilipinas regulatory approval.
“This approved funding indicates UnionBank’s confidence in our strategic growth plan and strong financial performance. We will use this to fuel our growth trajectory and allow us to better serve the financial needs of our customers,” said UnionDigital Bank president and chief executive Henry Aguda.
“Nearly 70 percent 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,” he said.
UD recorded a net profit in the first quarter of 2023, driven by its ecosystem-led business model.