UnionDigital Bank inks deal with Capital A

CEBU, Philippines —  The Aboitiz Group, through its subsidiary Union Digital Bank has formally inked a partnership deal with AirAsia’s mother company Capital A, to quench Filipino’s thirst for affordable travel post pandemic.

Contrary to earlier reports that the Aboitiz Group was acquiring a bigger share of the Malaysia-based low cost airline, Capital A president and CEO Tony Fernandes said “it’s not actually the case.”

Capital A’s partnership with UnionDigital Bank, the digital bank subsidiary of Union Bank of the Philippines, involves three key subsidiaries namely AirAsia, airasia Superapp, and BigPay.

AirAsia is the airline business of Capital A, while airasia Superapp is the one-stop travel platform offering services from flights, hotels, ride-hailing, loyalty programs, and more.

BigPay, on the other hand, is the fintech arm providing accessible and secure digital financial services with the vision of improving financial well-being and accessibility in Southeast Asia.

The ceremonial signing of the Memorandum Of Agreement (MOA) was held yesterday July 30, 2023 at the APEC Business Advisory Council (ABAC) meeting press conference.

UnionDigital Bank’s role will be to provide embedded finance in partnership with BigPay within the airasia Superapp travel platform, the main booking channel for AirAsia flights in the Philippines.

According to Fernandes who met with Aboitiz Equity Venture (AEV) president and CEO Sabin M. Aboitiz and UnionDigital Bank president and CEO Henry Aguda over lunch a month ago, the synergy promises to deliver a seamless and enriched travel booking experience for airasia Superapp’s users and redefine the way people travel and manage their finances.

One of the perks for Filipinos is the ability to afford travel through affordable credit access, with Air Asia’s low fair rates for both domestic and international destinations.

The partnership will enhance the travel experience of frequent fliers with flexible payment options with a Fly Now, Pay Later offer available in airasia Superapp, and exclusive co-branding deals.

Likewise, this will also create a progressive shift in the way customers plan and pay for their flights and other travel-related services, making fintech more convenient and accessible for Filipinos.

“For Capital A, the vision has always been to provide low cost, best value services, connecting people and realizing dreams, for people of Asean and beyond. With UnionDigital as our proud partner, we are now on our way to creating a future where travel meets innovative financial solutions that facilitate everyone’s dream journeys with unparalleled ease. We look forward to working with UnionDigital to redefine travel coupled with fintech as an accessible and enriching experience,” explained Fernandes mentioning that data has shown that seven out of 10 of our customers in the Philippines save up for their travel plans, carefully budgeting to ensure they can explore the world comfortably.

BigPay CEO Zubin Rada Krishnan expressed commitment to provide more Filipinos access to travel, particularly now that travel has become one of the desirable lifestyle expenses particularly among young professionals.

“As tourism flourishes in the region, we are excited to elevate the end-to-end travel and payment experience of Filipinos through our collaboration with UnionDigital Bank and airasia. Through this partnership, BigPay is one step closer to making our financial services highly accessible in the Philippines, with the mission of empowering people to level up their lives, one transaction at a time,” said Krishnan.

The Aboitiz Group, which recently acquired shares in GMR-Megawide Cebu Airport Corporation (GMCAC), the developer and operator of the Mactan-Cebu International Airport (MCIA), is now expanding its tourism-related business with this newest venture with one of the largest conglomerates in Malaysia—Capital A.

“This is a pivotal moment for the two important sectors in the Philippines. We are forging a path towards greater convenience, accessibility, and innovation to empower Filipinos to live better lives,” said Aguda.

The Aboitiz Group, which recently acquired shares in GMR-Megawide Cebu Airport Corporation (GMCAC), the developer and operator of the Mactan-Cebu International Airport (MCIA), is now expanding its tourism-related business with this newest venture with one of the largest conglomerates in Malaysia—Capital A.
“This is a pivotal moment for the two important sectors in the Philippines. We are forging a path towards greater convenience, accessibility, and innovation to empower Filipinos to live better lives,” said Aguda.