basic bank information
UnionDigital Bank is a digital bank positioned as a commercial bank and a subsidiary of Union Bank of the Philippines, Inc., focused on promoting financial inclusion through technology-driven financial services. It is not a state-owned or joint venture bank, but a private digital bank backed by its parent company, Union Bank, which itself is a consortium of the Aboitiz Group, Insular Life, and the Social Security System.
Full name: UnionDigital Bank Inc.
was established in 2021 and obtained the operating license issued by the Bangko Sentral ng Pilipinas (BSP) on July 12, 2022, and officially started operations on July 18.
Headquarters location: Pasig City, Philippines, specific address is UnionBank Plaza, Meralco Ave. cor. Onyx & Sapphire Roads, Ortigas Center 41/F。
Shareholder Background: UnionDigital Bank is wholly owned by Union Bank, a joint-stock company listed on the Philippine Stock Exchange (PSE) whose shareholders include Aboitiz Group (a diversified conglomerate), Insular Life (a major insurance company in the Philippines) and the Social Security System (a state-owned pension fund). UnionDigital Bank itself is not independently listed.
Scope of Services: As a digital bank, UnionDigital Bank provides services mainly through online platforms, covering the whole of the Philippines, especially in underdeveloped and underbanked areas, and is committed to providing financial support to micro, small and medium-sized enterprises (MSMEs) and the unbanked. There are currently no offline outlets or ATMs, and all services are provided through mobile apps and online platforms.
Regulatory & Compliance:
regulator: Regulated by the Bangko Sentral ng Pilipinas (BSP) and in line with the regulatory framework for digital banks.
Deposit Insurance: Join the Deposit Insurance Corporation of the Philippines (PDIC) Deposit Insurance Program with a maximum insurance amount of PHP500,000 (about US$9,000) per account.
compliance record: No major compliance issues have been disclosed recently. After obtaining the BSP operation license in July 2022, UnionDigital Bank quickly integrated Union Bank's digital banking brand, EON, and operated smoothly and showed strong compliance capabilities.
financial healthAs
an emerging digital bank, UnionDigital Bank's financial data has not yet been fully disclosed, but the financial health of its parent company, Union Bank, can be used as a reference. Union Bank ranks ninth in the Philippine banking sector and has a solid asset size. The following are speculations and industry reference indicators:
Capital adequacy ratio: Union Bank meets the BSP capital adequacy ratio requirements (typically above 10%), with UnionDigital Bank as its subsidiary , which is expected to maintain a similar level of capital adequacy, with data not disclosed.
non-performing loan ratio: Digital banks are expected to have a low non-performing loan ratio of about 3-5% due to strict risk control techniques and screening of target customer groups (micro, small and medium-sized enterprises and individuals).
Liquidity Coverage Ratio: Digital banks typically hold highly liquid assets to meet regulatory requirements, and UnionDigital Bank expects to meet the BSP's minimum liquidity coverage ratio requirement (100%).
UnionDigital Bank has limited financial data transparency due to its relatively young existence, but it is backed by the resources of Union Bank and the support of the Aboitiz Group, and its overall financial health is more reliable, which is suitable for users who are looking for innovative financial services.
deposit and loan products
Demand Deposits: UnionDigital Bank offers flexible demand accounts with low interest rates (the interest rate of demand deposits at the Philippine Digital Bank is about 0.5%-1%), and the specific interest rate needs to be checked through the official website or APP.
Fixed Deposits: Provide fixed deposit products with a variety of maturities, and the interest rate is expected to vary from 2% to 4% due to market fluctuations (refer to the Philippine Digital Bank Standard).
High-yield savings account: Launched a savings product for customers with high balances, with interest rates that may be higher than traditional banks, up to 4%-6% (specific terms need to be confirmed).
CDs: There is currently no clear indication that CDs are available, but its parent company, Union Bank, may offer a similar product through traditional channels.
loan class
car loans: Car loan services may be offered through joint banking channels with interest rates of around 5%-8%, and thresholds include proof of stable income and credit history.
Personal Credit Loan: UnionDigital Bank provides digital loans for micro, small and medium-sized enterprises and individuals, with an interest rate of 10%-20% (the interest rate of digital bank loans is higher), the approval process is simple, and the app can be used to apply quickly.
flexible repayment options: provide flexible repayment plans, such as installment payment or early repayment without penalty, and the specific terms need to be confirmed through the app.
>Mortgages: UnionDigital Bank is currently focused on MSMEs and personal loans, and mortgage products may be offered through parent company Union Bank, with interest rates typically ranging from 6%-10%, depending on the loan term and credit score.
list of common expenses
transfer fee:
>Domestic transfers: Transfers are usually free or charge a low fee (around PHP10-25) through local payment systems such as InstaPay or PESONet.
cross-border transfers: Cross-border transfers are more expensive, expect $20-$50 per transaction, depending on the target country.
>Account management fee: UnionDigital Bank focuses on low-cost digital banking services, usually with no monthly or annual fees, but may require a minimum balance (exact amount on request).
overdraft fee: Digital banks usually do not offer overdraft functionality, UnionDigital Bank may not have this fee.
ATM inter-bank withdrawal fee: Since there is no own ATM network, inter-bank withdrawals need to be made through the ATM of Union Bank or other partner banks, and the fee is about PHP10-15 per time.
Hidden Fee Reminder: Please note that minimum balance requirements or specific transactions (such as cross-border payments) may incur additional fees, and users are advised to read the terms and conditions in the app carefully.
digital service experience
User ratings: App Store and Google With a Play score of around 4.0-4.5 (based on the average of digital banks in the Philippines), user feedback focuses on a user-friendly and responsive interface, but there may be initial optimization issues.
core functions: support face recognition login, real-time transfer (through InstaPay, etc.), bill management (utility bills, communication fees, etc.), investment tools (such as Union Bank's wealth management products).
technical innovation:
AI Customer Service: Provide an AI-based chatbot to handle common issues such as account inquiries and loan applications.
robo-advisors: may integrate with Union Bank's wealth management tools to provide underlying investment advice.
Open Banking API: Supports open banking APIs to connect with the digital financial ecosystem (eGovPH) promoted by the Philippine government to facilitate identity verification and third-party service integration.
>App & Online Banking: UnionDigital Bank provides core services through its official app (UnionDigital), which supports iOS and Android platforms.
customer service quality
Live chat: The app has an embedded live chat function, and the response time is usually within a few minutes.
social media response: Rapid response through Twitter, Facebook, and other platforms reflects the social media activity of the digital bank in the Philippines, with an average response time of about 1-2 hours.
complaint handling:
>Complaint rate: As an emerging bank, the complaint rate is low, and the specific data is not disclosed.
average resolution time: Estimated 3-5 business days (industry standard).
user satisfaction: User satisfaction is high, especially among MSMEs and young users, due to its convenient digital services and low-cost structure.
>Service Channel:
> 24/7 telephone support: Provide round-the-clock customer service hotline (specific numbers need to be queried through the official website).
multi-language support: Mainly supports English and Filipino (Tagalog), may provide limited Chinese support for cross-border users (such as overseas Chinese), further confirmation is required.
security measures
Security of Funds:
Deposit insurance: protected by PDIC, up to PHP500,000 for a single account.
anti-fraud technology: real-time transaction monitoring and multi-factor authentication (such as face recognition, OTP verification code) are used to ensure account security.
data security:
ISO 27001 certification: There is no clear disclosure of whether it is ISO 27001 certified, but its parent company, Union Bank, adheres to strict data security standards, and UnionDigital Bank expects to adopt similar measures.
Data breaches: Major data breaches that have not been publicly reported, showing strong data protection capabilities.
Featured Services and Differentiations
Market segments:
> student accounts: fee-free accounts may be available, for young users (such as college students), specific products need to be confirmed through the app.
Exclusive wealth management for the elderly: There is no specific exclusive product for the elderly, but it can be obtained indirectly through the wealth management service of Union Bank.
Green financial products: support ESG (environmental, social, governance) investments, consistent with the Sustainable Development Goals promoted by the Philippine government, and may include green loans or low-carbon investment products.
high-net-worth services: UnionDigital Bank mainly serves micro, small and medium-sized enterprises and ordinary users, and private banking services are provided through the parent company Union Bank, the threshold is expected to be more than PHP1 million, and the specific customized plan needs to consult Union Bank.
market position and accolades
awards: There are no standalone "Best Digital Bank" or "Most Innovative" awards, but its parent company, Union Bank, has been recognized for its innovation with the launch of the Philippines' first stablecoin, PHX (2019), and crypto ATMs, and UnionDigital Bank has inherited its technology-driven brand image.
>Industry rankings: UnionDigital Bank, one of the six digital banks in the Philippines backed by Union Bank (the ninth largest bank in the Philippines), has small but fast-growing assets and has attracted about 900,000 customers since its inception in 2022.
summary
UnionDigital Bank is a young and dynamic digital bank backed by Union Bank's resources focused on serving MSMEs and unbanked people in the Philippines through technological innovation. Its offline-free model reduces operating costs and provides users with low-cost, high-convenience financial services. The digital experience is excellent, especially for real-time money transfer and bill management, for young users and small business owners who are looking for an efficient, mobile-first approach. However, as an emerging bank, its product lines (e.g., mortgages, investment vehicles) may rely on the parent company, and there is limited transparency of financial data, so users are advised to carefully check the specific interest rates and terms before choosing.
