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).

  1. UnionDigital Bank, a digital bank in the Philippines, has achieved profitability in a short period of time.
  2. 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.
  3. Deposits grew 113% in the first half of the year, reaching PHP 20 billion, giving UnionDigital Bank a 32% market share among digital banks.
  4. Its loan portfolio has grown to PHP 13 billion, up 126% on an annual basis.
  5. 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.
  6. The bank’s success can be attributed to its parent company’s resources and experience in the banking industry.
  7. 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.

How UnionDigital Bank achieved profitability quickly - Kapronasia
UnionDigital Bank has a lot of resources from its parent company to draw upon that have helped it reach profitability quickly.
Share this post
The link has been copied!