UnionBank first traditional Philippines bank to secure digital banking license
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On 15 July, the Union Bank of the Philippines (UnionBank) became the first publicly-listed, traditional bank to receive a digital banking license by the Philippines central bank, Bangko Sentral ng Pilipinas (BSP). The digital bank will be incorporated as Union Digital Bank (UnionDigital), a wholly-owned subsidiary of UnionBank.
Much of the rest of fast-growing Southeast Asia (SEA) has rapidly moved onto adopting innovations and progressing their digital footprint, with the Philippines in recent times catching up to its regional peers.
In 2019, SMEs recognized the urgent need to digitalize. A report by BSP in 2019 found that a staggering 71% of Filipino adults are unbanked, making traditional banking services out of reach for most. This is largely due to the geographical nature of the Philippines, which comprises over 7,500 islands.
Digital could be a lifeline for everything, — Ernest Cu – Manila Bulletin mb.com.ph - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mb.com.ph Daily Mail and Mail on Sunday newspapers.
Banking on digitalisation for sustainability 28 Jun 2021 / 10:42 H. Digitalisation and sustainability initiatives are top of the agenda for Southeast Asian banks, and will be the key drivers of banking profits in the next few decades.
IT has been challenging for Asean banks to adapt their operations and maintain banking profits during the pandemic. Southeast Asian banks are also worried that further movement restrictions may affect banking profits.
Nevertheless, Southeast Asian banks can seize the opportunities from the rising demand in banking and financial services. This increase is primarily due to the increasing wealth of Southeast Asia’s rising middle class as well as the digital adoption during the pandemic.
MANILA, Philippines The Bangko Sentral ng Pilipinas (BSP) has approved the applications of Tonik Digital Bank and UNObank to operate as digital banks in the country, bringing to three the number of participants in the new bank classification. Tonik Digital Bank, a unit of Singapore-based Tonik Financial headed by founder and chief executive officer Greg Krasnov, was granted a license to operate as a rural bank in the Philippines in December.