UnionBank to establish digital banking arm called UnionDigital

UnionBank of the Philippines announced on Wednesday that the Bangko Sentral ng Pilipinas (BSP) has approved its application to establish a digital bank.

Its digital banking arm-to-be will be a wholly-owned subsidiary and will be called UnionDigital.

Digital banks are defined as financial institutions without physical branches and are regulated under the BSP’s newly launched digital banking framework.

“Please be informed that the Bangko Sentral ng Pilipinas approved on July 15, 2021, per its letter dated July 19, 2021, which was received by Union Bank of the Philippines today, the application for authority to establish a digital bank,” said the BSP in a disclosure to the stock exchange.

To date, the BSP has granted digital banking licenses to LandBank’s Overseas Filipino Bank (OF Bank), Tonik Bank, and UnoBank.

UnoBank, backed by Singapore-based fintech company DigibankASIA, has stated that it is eyeing a Philippine launch in the coming months.

BSP Governor Benjamin Diokno has also stated that several other groups have filed an application to establish a digital bank, including the Gokongwei group.

SOURCE: ABS CBN