UnionDigital Bank revenue grows to over P5 billion

MANILA, Philippines — UnionDigital Bank, the digital banking arm of Aboitiz-led Union Bank of the Philippines, saw its revenue grow to over P5 billion in 2023 mainly driven by higher deposits and loans.

“This period marked a significant milestone as UnionDigital Bank achieved profitability in 2023, showcasing extraordinary growth with revenue soaring by 13 times, totaling over P5 billion,” the bank said in a statement on Monday.

The digital bank said it has cornered a 65-percent market share of the industry’s loan portfolio size and ranked second among digital banks in deposit with a 25-percent share.

The online lender’s loan-to-deposit ratio also surged to 69 percent at the end of 2023 from 58 percent a year ago. It said that it surpassed other digital banks in the country.

The bank was named as the “Best Digital Bank in the Philippines” by TAB Global’s Global Excellence in Retail Finance Awards 2024.

UnionDigital Bank CEO Henry Aguda said that being acknowledged as the best digital bank in the Philippines reflect the lender’s dedication to deliver exceptional service to its customers and pioneer new innovation.

“This honor mirrors the hard work and dedication of our team in setting new benchmarks for digital banking and continuously striving to lead the industry into the future,” Aguda said.

Since becoming a digital bank subsidiary of UnionBank, UnionDigital said it has been a trailblazer in the digital banking industry. The neobank also had strategic collaborations with partners such as digital healthcare platform mWell, ride-hailing company Angkas and Malaysian airline firm Capital A.

Apart from UnionDigital, the six digital lenders in the country include Overseas Filipino Bank, Tonik Digital Bank, UNObank, GOtyme and Maya Bank.

“As we continue to solidify our position as a rapidly profitable digital bank in the Philippines, the recognition underscores our ongoing commitment to excellence and innovation in the industry,” Aguda said.

“This distinction serves as an encouragement for us to further our efforts in promoting financial inclusion, enhancing our financial services, and cementing our role as a key contributor to the digital banking sector,” he added.