For cooperative leaders, here is Chat MPC's annotated executive sheet of the report by Kapronasia on UnionDigital Bank’s profitability (How UnionDigital Bank achieved profitability quickly, 31 August 2023).
- UnionDigital Bank, a digital bank in the Philippines, has achieved profitability in a short period of time.
- The bank’s net income grew by triple digits year-on-year in the first half of the year, which it attributed to a substantial loan portfolio it has built up in its “UnionBank ecosystem.”
- Deposits grew 113% in the first half of the year, reaching PHP 20 billion, giving UnionDigital Bank a 32% market share among digital banks.
- Its loan portfolio has grown to PHP 13 billion, up 126% on an annual basis.
- UnionDigital Bank is an offshoot of UnionBank, which is one of the largest banks in the Philippines and made a profit of roughly US$224 million in 2022.
- The bank’s success can be attributed to its parent company’s resources and experience in the banking industry.
- The bank has also embarked on an embedded finance project with Capital A and three of its subsidiaries: AirAsia, AirAsia Superapp, and BigPay. The project aims to enhance the travel experience of frequent fliers with flexible payment options with a “Fly Now, Pay Later” [FNPL] offer available in the AirAsia Superapp, as well as by offering exclusive co-branding deals.