How AI and blockchain are making banks more inclusive in the Philippines

Tweet

Dr. David R. Hardoon, Chief Data and AI Officer at Union Bank of the Philippines shares how AI and blockchain in banks can promote financial resilience.

Imagine having an AI-powered fridge that can predict what ingredients you need for the day, make purchases online automatically while helping you take a microloan at the same time. This can be the future—where banking not only occurs in ATMs or branches but also in every part of your life.

Digitalization in banking can extend banking services to everyone, everywhere. This can benefit rural communities greatly since they are traditionally excluded from accessing banking services like getting a loan.

Dr. David R. Hardoon, Chief Data and AI Officer at the Union Bank of the Philippines (UnionBank), shares how digitalization can promote financial resilience and improve the lives of rural communities in the Philippines.

Ensuring financial resilience amongst rural communities

In the Philippines, many communities struggle to access banking services. 47 percent of Filipinos still lack a bank account in 2021, reported Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines. This includes many farmers and those working in the informal sector, like handicraft vendors.

A reason is that some rural residents do not have the documents needed to open a bank account, like identification or income statements. Without a bank account, it is harder for them to receive or transfer money.

But giving rural farmers a bank account does not solve all problems, says Hardoon. It might seem like financial inclusion, but they still cannot access services like getting a loan if they lack the necessary documents.

Banks need to go beyond financial inclusion, Hardoon emphasizes. This means promoting financial resilience—giving rural communities continuous opportunities to improve their finances.

AI helps excluded communities access banking services

Banks can use AI to help citizens achieve financial resilience. UnionBank’s MSME Business Loan project was created with the aim of extending credit access to the bank’s Mass Market clients—including rural communities—through the enhanced, alternative AI-powered credit scoring and risk models. UnionBank Business Loan is being offered in SeekCap, an online lending marketplace managed by UnionBankthe bank’s fintech arm UBX.

Many rural residents struggle to get a loan to start a business or go to college as they need credit scores. Farmers or vendors mainly use cash instead of credit cards, Hardoon explains. As it is harder for banks to assess their credit score worthiness, they might not be eligible for a loan.

The enhanced, alternative AI-powered credit scoring and risk models calculate and evaluate credit scores based on alternative data such as macro and socio-economic data, geographical attributes such as points of interests and land elevation, and internet footprint.

TheseWith the help of data analytics and machine learning, tools can generate data-driven recommendations are generated on whether to extend the loan to the customer in a few seconds. This makes it faster and more flexible for rural residents to get loans.

Connecting rural banks using blockchain

Blockchain technology in banking can “rapidly connect institutions that were previously not connected,” says Hardoon. Blockchain allows transactions to occur immediately without going through a third party.

53 percent of Filipinos in 2020 live in rural areas, reported the World Bank. But rural banks are disconnected from major banks and each other because they do not have the tools to provide electronic banking services. This makes it hard for rural residents to receive or transfer funds quickly.

Bank connectivity is also important for overseas workers to easily transfer money to families in rural villages. In the Philippines, overseas remittances make up 10 percent of the GDP, shared UnionBank.

UnionBank’s Project i2i uses blockchain solutions that remove manual processes in transferring money, making it faster. When you transfer money to and from rural banks without blockchain, it might take hours or a few days because the banks need to verify the transaction without blockchain tech.

But blockchain is very secure. It is additionally, as blockchain technologies are not centrally controlled, so it is hard for cyber attackers to access the data through a single-entry point. Others cannot change transactions made via blockchain, so they can be verified and processed in real-time. As transactions in blockchain are very secure, they can occur even outside of the bank’s business hours.

The hyper personalisation of banking

UnionBank is also using digitalization to make banking engage more closely with the citizens’ lifestyles. They launched The ARK, a fully -digital branch in the Philippines, which uses technology to align banking services to the individual’s needs.

Virtual reality headsets allow customers to check out the car or house that they are applying to get a loan for. This can help them make better and more informed decisions. “It’s almost like a gamification of banking,” says Hardoon.

Meanwhile, a virtual teller machine provides virtual customer service, cash deposits, and withdrawals. This makes it more convenient for customers who are rushing to work or do other activities.

The whole narrative of banking doesn’t need to be just in terms of finances, but a lifestyle, Hardoon highlights. People don’t just open their wallets and say, “I’m missing a credit card,” he explains. Instead, they are motivated by certain lifestyles and needs. They might be taking a loan to buy a house or to attend college, for example.

To better address their needs, banks need to be hyper-personalised, Hardoon says. It’s not just about showing customers the wonderful range of loans, but why they are relevant to them by meeting some of their needs, he adds.

The future of AI and digital banking

What excites Hardoon the most about AI is how widespread it has become. “There is AI, but no one realizes it,” he notes. From getting our food delivered to using a carsharing app, AI is everywhere in our lives. But we never notice it.

When people in the streets access financial services, they don’t know that the system is using AI, says Hardoon. They only focus on the benefits AI offers: an easy and convenient way to assess banking services.

For example instance, with an AIthe enhanced, alternative AI-powered credit-scoring and risk models enable a same-day approval process provided that system, they just have to submit the required details are submitted before they can access the loan within minutes. “It’s the practicality—in fact, the simplicity—that I find very exciting,” shares Hardoon.

When it comes to unlocking the potential of AI, it’s just a matter of doing it. “Ai is an investment that pays for itself,” Hardoon says. AI is a learning process—and it’s a process that will only get better, he adds.

Financial inclusion is one of the key elements of eliminating and reducing poverty, as outlined in the Global Goals set by. It is present in seven of the United Nations’ Sustainable Development Goals. With the help of AI and blockchain, banks can help more rural residents access financial services and build a better life for themselves.

Credit to: GovInsider

The strength of the feminine touch: EastWest’s female executives bring experience, skill, and understanding to banking

Tweet

Like many professions over history, banking has traditionally been seen as a field dominated by men. It’s no different in the Philippines, where banking in the country took root in the middle of the 19th century. When one mentions bankers, the mental image that comes to mind can still be that of prim and wizened men.

Ivy B. Uy, Jacqueline S. Fernandez, Isabelle Gotianun Yap

Three of EastWest’s female senior executives share their perspective of succeeding in a traditionally male industry

Despite this perception, the past few decades have done much to challenge and change this idea. Women have increasingly risen through the ranks in many banks in the Philippines, and by the turn of the millennium a handful of the country’s top banks have already embraced the strength and intellect they have to offer in high-ranking positions.

Gotianun-led EastWest is one such bank that has openly rostered a remarkable amount of women in its entire ranks, all the way up to senior management and executive levels. As of Dec. 2021, the bank currently has 4,384 female employees over 2,361 male employees, with 131 female executives over 114 male executives. Currently the bank also has five female members on its Board of Directors.

This strong female-to-male ratio in EastWest’s employee base is due to the bank sufficiently establishing itself as a meritocracy which does not see any gender bias—something that three of its female senior executives know all too well.

“EastWest is a meritocratic environment who cares deeply for its people,” said Board Director Isabelle Gotianun Yap. “We stand by our RED framework—Role Clarity, Environment, and Development for all, and our programs are focused on these elements. We believe our steadfast commitment to placing our people at the center makes a great place for anyone, especially women to work in.”

Simply put, if you’re a banker who excels and is deserving, you get the spot. “Merit and credit are given to the most deserving, this is very much aligned to the culture of the bank. EastWest gives equal opportunity to everyone to excel,” says EastWest SVP and Deputy Head of Retail Banking Group Ivy B. Uy.

“The bank doesn’t consider gender or anything for that matter in making decisions when it comes to people. Fortunately, EastWest has attracted equally good women,” shared SEVP and Chief Lending Officer Jacqueline S. Fernandez.

“I have been in banking for the past 29 years, being exposed to both male and female bosses that served as my role models. I do not believe in stereotypes—I really believe in equality between men and women as long as you also do not undermine yourself and your capabilities,” Uy added.

It also helps that Philippine society as a whole is generally more open to having women in leadership positions, which other countries could still have a problem with. This receptiveness to the idea translates into better opportunities for women’s upward mobility, not just in EastWest but in many organizations and institutions.

“The Philippines is relatively supportive of women in leadership positions so there is a lot of room for upward mobility,” said Yap. “At EastWest, there are definitely opportunities for upward mobility for women—you can see this from our board where almost 50% of our directors are women, and also in our Executive team. We definitely walk the talk here.”

“Over the past few decades, we have seen more and more women occupying senior positions in the banking industry,” said Fernandez. “Since the environment is now neutral to gender, it is just a matter of having women who have what it takes and are ambitious to be at the top. Given this, maybe you can say it’s much easier now compared to five decades ago.

“Though it is true that banking at the top is still male-dominated with only few female bank presidents, many women have proven their mettle over the decades that the banking industry has already opened up to women having senior posts,” added Fernandez.

The feminine strength

Although EastWest prides itself as a bank that does not discriminate, it’s worth noting that women also have their own unique advantages that they bring to their management roles.

“I believe women can add perspectives on empathy and perhaps concerns employees may have not just in the workplace but outside it as well,” said Yap. “Women are also equally resilient and determined, once we have a goal, we are also laser-focused on achieving this.”

Uy is very much familiar with the strengths that a female perspective can add to a bank’s performance, as someone who oversees the bank’s wide network of stores and helped lead remarkable and transformative operations in the organization.

“In my opinion, women bring three unique things to their roles: a transformational leadership style, open cooperation and collaboration, and a democratic communication style,” shared Uy.

“Women are more maalaga. Women leaders function as a role model for their subordinates. They inspire their team and spend a lot of time coaching their team. They care a lot about their personal development.

“Women leaders emphasize teamwork and authentic communication as a key to success. For most women leaders, leadership is not meant only for accomplishing organizational goals but for transforming their followers into better people.

“Lastly, women leaders tend to be participatory and possess a democratic style of leadership. Women oftentimes indirectly communicate their expectations of a given task and allow more space in accomplishing a goal. It sometimes helps the team members use their skills and expertise to complete the task, however, at other times it can be a drawback if the assigned task requires a leader to have direct communication with the members.”

While it is just as true that the strengths and skills that allow one to rise to the top are the same regardless of gender, sometimes there are just some intangibles that some have—and a diverse set of perspectives is crucial to an organization’s exceptional performance.

Providing the proper support

It’s not only in the senior management and executive levels where allyship and consideration for women count—EastWest is also aware that it constantly needs to improve and make sure that its female employee base is always supported, especially when it comes to women’s needs.

“The recent pandemic has brought new challenges to women in terms of work-life balance,” shared Yap. “As our bank was one of the most work-from-home banks in the country, we heard how our employees had to juggle working, teaching, and cooking with everyone under one roof. While we are normalizing and moving back to pre-pandemic work arrangements, we still need to be cognizant that everyone, including women, are also going through that transition in their own lives.”

Fernandez agrees with the need to show more institutional support to women employees. “As an employer, I think we can have some opportunities to address some of their concerns, such as providing lactating rooms to nursing mothers, and other similar initiatives,” she said.

This support for women not only extends to EastWest’s employees, but also to the bank’s female customers, which make up a huge part of its clientele. EastWest understands the financial power that female customers possess, and is currently actively exploring more ways to serve them better and maximize their potential.

“In the Philippines, women play an important role as well in managing the finances of the family, so of course I believe we should have more relevant products for women,” said Yap. “While there are female-targeted products, we should go a layer further and cater to life stages of women and understanding their financial needs from there.”

“Our data are telling us that our borrowers are more women,” said Fernandez. “Thus, we do marketing programs based on various personas which include women.”

“There is always room to understand the needs of any customer more so that we can come up with products or services that can serve them better,” said Uy.

With female EastWestbankers in prominent positions, greatly equipped with the insight and understanding of women on both sides of the counter, both female employees and customers can be assured of top-notch care and service at the bank. EastWest’s direction of holding women up as equal is a permanent and immovable pillar—and major factor—of its excellence.

UnionBank GlobalLinker partners with Lazada to help entrepreneurs expand their online presence

Tweet

Union Bank of the Philippines (UnionBank), the country's leading digital bank for micro, small, and medium enterprises (MSMEs), has again teamed up with one of the major e-commerce platforms Lazada, enabling online sellers to have more options when it comes to bringing their products closer to customers.

With the memorandum of agreement (MOA) signed last 10 March 2022, UnionBank through its digital MSME online platform UnionBank GlobalLinker (UBGL), will create a special site for all Lazada sellers and the latter will do the same for UBGL sellers. All existing Lazada sellers prior to the partnership will be automatically included.

According to UBGL and Lazada, the joint initiative aims to encourage more sign ups in both of their respective marketplaces. It will help entrepreneurs expand their online presence much easier, as enlisting with either platform automatically opens up another virtual storefront for them, resulting to more opportunities in doing business with customers.

Signing up offers numerous benefits to sellers. First, they will have access to a dedicated Lazada Onboarding Team. This crew can provide guidance on a number of ideas ranging from selling to strategies; help those who have questions or concerns; and notify sellers about the latest initiatives within the Lazada platform.

In addition, sellers can utilize the following campaign features for free: Members Exclusive Campaign (Home Page Banner, Landing Page, and Lazada Live), New Seller Campaign Access, and Mega Campaign Access. The first 150 signups also enjoy service marketplace packages amounting to more than PHP 1 million in support. These include Product Photography, Product Upload, and Store Builder Design, among others.

Lazada will likewise be promoting the UnionBank GlobalLinker platform to its own Lazada Seller Community, so that they too, can reap the benefits of the UBGL Platform.

“Right now, we are, without a doubt, in the golden age of e-commerce in the country. We want more enterprising Filipinos to thrive in this period of exponential growth for online shopping, which is why our enhanced partnership with Lazada is very timely,” said Jaypee Soliman, UnionBank Vice President and Head of SME and Micropreneurs Segment. “This is all part of our efforts to support the country’s MSME sector, bolster our “Tech-Up Pilipinas” advocacy, and promote inclusive prosperity for Filipinos.”

"With more MSMEs going online, the partnership with UnionBank is definitely a great step forward in enabling Filipino businesses to grow and scale their e-Commerce presence. As we go into our 10th year of empowering MSMEs to go digital, we share an equal mission with UnionBank to continue to uplift Filipino entrepreneurs and further fuel the local digital economy,” says Carlos Barrera, Lazada Philippines Chief Operating Officer.

Lazada has been a reliable partner of UnionBank in backing the country's MSME sector and making online shopping easier for customers since 2020. During the peak of the health crisis, the two companies provided an emergency credit lifeline to Lazada sellers who were heavily affected by the pandemic. In August of the same year, they launched the UnionBank Lazada Credit Card, providing numerous perks to Lazada shoppers.

UBX to double workforce in 2022

Tweet

New hires to drive further growth, inclusive finance vision of UBX

UBX, the leading open finance platform in the Philippines, plans to more than double its workforce this year to strengthen its goal of developing more digital financial solutions and better serve consumers and businesses.

After gaining traction in 2021, UBX plans to continue innovating to introduce more solutions in various financial segments, including, but not limited to payments, banking services, savings and insurance, identity verification and credit scoring, as well as cryptocurrencies, among many others.

To do this, UBX is looking to boost its workforce for business development and tech with plans to add more than 200 employees within 2022.

“Despite the pandemic, we were able to grow our workforce to a little over 200 in 2021, allowing us to grow rapidly and promote our goal of making finance inclusive for everyone. We are ramping up our hiring initiatives to reach our target headcount of 500 this year, as we implement our growth strategies and expand our spectrum of financial services throughout 2022,” UBX Chief Human Resources Officer Gladys Ocampo said.

UBX, a three-year old startup backed by UnionBank of the Philippines of conglomerate Aboitiz Group, recorded impressive growth in 2021, serving over 200,000 business to business customers, partnering with more than 2,000 independent banking agents and 250 financial institutions, and recording an annual gross transaction value of P20 billion.

This upward trajectory allowed UBX to quintuple its revenues last year, a growth momentum that is expected to ripple through 2022.

As part of its core value of being inclusive, UBX hires talent that fit the skills needed for the job, regardless of one’s gender identity, educational background, training, or experience.

UBX hires fresh graduates, especially in the field of technology, and provides them with free training through its Bootcamp on programming languages such as Appian and Outsystems.

“We provide our talent with resources and tools to develop their skills and knowledge in their field. At UBX, we are not afraid of investing in our people, who, in turn, invest in us as well with their talent,” Ocampo said.

UBX plans to mount open house roadshows in key areas outside the National Capital Region (NCR) to encourage talent from the provinces to join the leading fintech innovator. It plans to scout for tech talents in Iloilo, Cebu, Davao, and Cagayan de Oro.

“We operate an open, agile, innovative, experimental, and highly collaborative environment. We are looking for people who share our mission of embedding financial services into the activities and experiences, as well as giving access to the unserved and the underserved market” Ocampo said.

About UBX

UBX is the financial technology venture studio and fund of UnionBank of the Philippines. UBX is predicated on a future where financial services are invisible: seamlessly embedded into the experiences and activities that truly matter to businesses and people. For partnerships, email us at hello@ubx.ph.

For more information about the company and this article, please visit www.ubx.ph

UnionBank joins PSE Investment Forum 2022, talks crypto as future of banking, finance

Tweet

Union Bank of the Philippines (UnionBank) Senior Executive Vice President, Chief Technology and Operations Officer and Chief Transformation Officer Henry Aguda joined discussions on digital and crypto assets as the future of financial investments at the recently concluded PSE Investment Forum 2022.

As the country’s first bank to successfully carry out financial transactions through blockchain, UnionBank attests to the use of technology in banking securely and efficiently. Blockchain can thus, be applied in a wide array of use cases.

“In fact, one of the very good applications we started with early on, was how to address the problem where rural banks don't have access to one another; and to the basic banking requirements in the industry,” Aguda explained.

“We found a cheaper solution, and we gave this to the rural banks in the form of i2i, a platform that allows us to provide them a channel to interconnect with each other. And we wouldn't have been able to do that if not for blockchain, specifically because of its low-cost operations and how easy it is to program,” he added.

Asked whether blockchain-based transactions are the future of banking and finance, Aguda agreed. "If you follow trends in history, we went from gold to paper, now it's moving toward digital. So, if you go by that trend, everything is going to be digitized form of transactions. It's no longer going to be a transfer of record of value, it will be a digital transfer of value."

As to crypto being a viable investment, the UnionBank executive answered in the affirmative but expounded. "Yes, but subject to the following. First, keep it to the top 10 coins. Second, it shouldn't be above five percent of your total investible portfolio, meaning it's money that you can afford to lose. And third, do your own research," Aguda said.

To conclude his talk, Aguda reminded the attendees: "First, on blockchain technology, it's something that every company should explore. We've proven that it's useful in terms of increasing efficiency in operations, and it's easy to use. Second, as an investment instrument, (crypto or currency based on blockchain) it's in the early stages. If you want to experiment and include it in your portfolio, it's at your own risk. The regulation is still evolving, so treat it as a high-risk instrument and then explore,” Aguda said. 

“Hopefully, venues like these where it is discussed, help the regulators form the right risk management framework and policies around it."

Priority for AI implementation should be trust, not regulation – UnionBank data science, AI expert

Tweet

Dr. David Hardoon, UnionBank Senior Adviser for Data & Artificial Intelligence, was recently invited to discuss his views on data science and artificial intelligence (AI) at an EFMA Sustainability & Regulation Community Best Practice Forum.

The Data & AI expert believes that “regulating AI is the wrong goalpost,” arguing that the objective must be safety first and equality, promoting trust in the technology. Adding that there are safety nets to mitigate the risks associated with it.

"Data, and to an extent, the AI as a mechanism and tool which manifests possibilities out of data, is an onion,” Hardoon said. "And what you find with this onion is that it's not just about data. It's not just about application. It's not just about consumer engagement. It's also about history. It's also about our understanding of our own current behavior. It's essentially opening up an immense view that potentially, previously, we were completely unaware of.”

Dr. Hardoon explains that AI may broken down to at least three buckets. First is data, which may be historically good or bad as it is a genuine representation of issues or errors that happened in the past or may happen moving forward. Then there is the AI system itself, specifically the approach of extracting information from the available data. And finally, there is the operationalization of the information that comes out.

"When thinking about operationalizing AI governance, it is imperative to have a broad appreciation of the risk that comes from your available historical data—the potential disadvantages, or errors, or issues, or elements that may result in lack of trust that may come from that," Dr. Hardoon cited.

He emphasized that the most important thing about operationalizing AI within an organization is trust. Dr. Hardoon likened this on how individuals trust their closest friends and family members.

"Our trust in them isn't that they always are correct or even always tell the truth, but it is in their ability to say 'I'm sorry, I made a mistake. Allow me to correct myself.' That is the exact same principle which we need to hold ourselves accountable for when we're applying new technology, in making sure we're putting in place safety nets, in assuring that we are able to validate what we're doing and making sure that we are doing the right thing."

Dr. Hardoon said that part of the ‘peeling’ process, especially of a new set of technology, is best to still have people in the loop.

"Not that the human may be any better, but we trust humans so far a bit more right now, until we get to that stage of realizing it's good. Or perhaps in certain areas, we must simply accept that AI should never play a role, because we want to have the ability of continuous intervention in terms of outcome," Dr. Hardoon concluded.

UnionBank clients can now seamlessly do direct cash-in to their Shopee and Lazada wallets!

Tweet

UnionBank clients can now do their online shopping more conveniently through the country’s major e-commerce giants Shopee and Lazada -- by directly cashing-in their e-wallets. This new option opens another channel for Bank customers to do their online transactions seamlessly.

Surely, buying essentials online has never been this easy! Shopee and Lazada buyers can now easily cash-in, in real-time from their UnionBank accounts. Customers also enjoy discounts and added benefits with their online purchases, for every top-up transaction.

This was made possible with the collaboration of tech-savvy ShopeePay, Lazada Wallet and UnionBank, combining the power of three digital leaders.

“These partnerships are timely especially now at a time when e-commerce and cashless transactions are exponentially rising. This ensures Filipinos can participate in the headwinds of innovation and a better, more seamless customer experience as a result.” shared by Erika Denise Dizon, UnionBank FVP and Head of Fintech Business Group.

Here’s how it works. To cash-in your ShopeePay using UnionBank Online Banking, go to ShopeePay Wallet, select Cash-in, enter the amount, select online banking as the payment method, and choose UnionBank. You will then be directed to the Bank’s online banking to confirm the transaction.

For Lazada Wallet, click the wallet icon on the upper right portion of the homepage. Select the cash-in button, enter the amount, and select “Add UnionBank account” in the Cash-in Methods page. You will then be directed to the Bank’s online banking site for confirmation of the transaction. Then enjoy shopping!

Former Citibank PH country manager confident with Citi’s choice of UnionBank

Tweet

Insular Life Assurance Co. Ltd. (InLife) Executive Chairman Nina D. Aguas, first female regional audit director in Citibank as well as the first woman country manager in Citibank Philippines, shares her excitement after Union Bank of the Philippines (UnionBank) announced that it has entered into an agreement with Citigroup Inc. (Citi) to acquire Citi’s consumer banking business in the country. Together with the Aboitiz and SSS, Insular Life Assurance is a key shareholder in UnionBank.

Citi started in the Philippines in July 1902 when the International Banking Corporation, forerunner of Citibank, established a branch in Manila. Today, Citi Philippines is the largest foreign bank in the country in terms of customers, assets, and revenues.

Citi Philippines is an acknowledged leader in consumer banking owing to its enviable track record for innovation and customer service. It offers a full range of world-class banking products and services, including credit cards and Citigold Wealth Management.

“Citi Philippines was the first consumer banking business established by technology pioneer and visionary John Reed in Asia. It is one of Citi’s crown jewels in Asia, so bequeathing this business to UnionBank says a lot about how much confidence and trust Citi’s management has for the new owner” said Aguas, one of Forbes Asia’s 25 most influential persons in 2020.

In a text message to her fellow former Citibankers, Aguas also assures her fellow Citi Alums that UnionBank will continue to build on the successes of Citi. The legacy, the culture of professionalism, innovation and impact to the community lives on. Quite a number of former Citibankers hold Board and Senior Executive positions in UnionBank

Prior to being InLife’s executive chairman, Aguas was Citigroup Inc.’s Managing Director for Corporate Center Compliance in New York; Country Business Manager of Global Consumer Group in the Philippines; Head of Sales & Distribution of Global Consumer Group in the Philippines; and Regional Audit Director of Asia Pacific. Aguas is Citibank’s 2021 Distinguished Alumni for Leadership & Ingenuity.

UnionBank attributes DX success, innovation in part to BSP's openness

Tweet

Embracing digital transformation early on, Union Bank of the Philippines (UnionBank) continues to blaze the trail and excite customers with innovative solutions driven by technology and co-creation. Henry Aguda, Senior Executive Vice President, the Bank’s Chief Technology & Operations Officer and Chief Transformation Officer, cites how enabling and essential it is to have your regulator’s support.

"A lot of people claim that if you're in a heavily regulated industry, you won't be able to become agile. Worse, the regulators may stand in the way," Aguda articulated as a panelist during the recently concluded IBPAP International Innovation Summit. But he was quick to say, "Strangely enough, they're the ones encouraging us to innovate."

UnionBank attributes its success in digital transformation and innovation in part to the openness of the Bangko Sentral ng Pilipinas (BSP), which has been opening an environment that is conducive to thinking outside of the box. "I think regulation would normally be the blocker, but fortunately enough, the BSP has created a sandbox for experimentation, like UnionBank's API platform, and open finance experiments," Aguda said.

Another example is the BSP's push for digital payments. It was in late 2017 when the banking regulator launched the National Retail Payment System (NRPS), providing the framework for the modernization of retail payments in the country.

"Prior to the pandemic, the BSP already pushed for the NRPS. It was actually the BSP who was saying, 'hey, we should go to digital payments.' There was some resistance in the industry, but UnionBank signed up for it early. Now, BSP is looking into how to create a responsible regulatory framework for digital currency."

Aguda also mentioned a UnionBank experience with the BSP, reflecting its openness to innovation and willingness to collaborate despite tight timelines, with the customers’ benefit in mind.

"During the pandemic, we had to send out a new product that will allow us to launch an app that will enable our customers to cash out in 11,000 counters nationwide. And the framework for us to execute that, as well as the product approval -- we got that covered in a matter of two weeks. We apologized to the BSP team because we had to work with them over the weekend, up to 11 in the evening. So, talk about a regulator who's responsive to the times."

"Fortunately, our regulators don't stand in the way of moving quickly towards the goal of a more digitized financial industry," Aguda concluded.

Achievements, future projects take the spotlight at UnionBank’s E-TalkTales year-ender event

Tweet

In celebration of its numerous accomplishments and milestones this past year, and to give a small preview of what its customers can expect in 2022, Union Bank of the Philippines (UnionBank) held another iteration of its long-running virtual media roundtable series E-TalkTales last December 15.

During the virtual event, UnionBank Senior Executive Vice President, Chief Technology and Operations Officer, and Chief Transformation Officer Henry Aguda talked about some of the Bank's achievements for the year, while the Co-Founder and CEO of UnionBank's digital-native banking arm UnionDigital, Arvie de Vera, talked about the role that the newly formed digital bank will play in UnionBank's digital transformation journey going forward.

Aguda began the discussion by recounting how UnionBank's digital transformation journey has enabled it to brave 2020 and the equally challenging 2021. "The pandemic created this shift to digital, which we now refer to as the “new digital normal”. We changed the way we live, the way we travel, the way we interact with one another, and basically we've changed forever in terms of how we transact in the financial sector."

"But even before the pandemic, UnionBank already had this forward-looking view that digital is the way for us to move forward, and when the pandemic hit, not only did we survive, but I'm happy to say that the Bank actually thrived," according to Aguda.

He then highlighted the top 10 most notable achievements of UnionBank in 2021. These include being the only publicly listed Philippine bank to be granted a license to operate a digital-native bank; the successful groundbreaking of the UnionBank Innovation Campus, the country's first-ever learning institution focused on digital innovation; and having 21 patents for its innovative offers already approved and 18 more on the way.

Other notable achievements include the integration of Instapay 2.0 into its digital banking platform; the successful launch of the UnionBank SME Banking App; the launch of wealth management educational campaigns including the NextGen Academy; significant user growths for UBX’s platforms SeekCap, Bux, and Sentro; and the significant increase in its customer base to almost 10 million to date, from just nearly 7 million as of end-2020.

Meanwhile, de Vera provided a quick introduction to UnionDigital. UnionDigital is one of only six financial institutions in the Philippines that have officially been granted digital banking licenses by the Bangko Central ng Pilipinas to date. As UnionBank's digital banking arm, UnionDigital will focus on delivering banking and financial services to underserved sectors which the parent bank is not able to optimally cater to.

"While UnionDigital aims to empower the country's digital economy, we also aim to elevate it by bringing trust and governance into the space. We embrace innovation like a fintech, but offer all the powers, experience, and track record of a fully regulated bank,” de Vera said.

“At the heart of our work will always be the desire to provide our customers with what they want and what they need, while ensuring that they have what they need in terms of security, compliance with regulation, and proper governance," de Vera added.

In terms of what customers can expect from the Bank and its subsidiaries in 2022, some of the things that Aguda and de Vera gave a sneak preview of were the Bank's possible foray into non-fungible tokens (NFTs), several new solutions aimed at helping workers in the thriving gig economy through EON, and participating in the growing interest and opportunities relating to the metaverse, just to name a few.

UnionBank Chief Marketing Officer Albert Cuadrante capped off the event with a promise that the Bank will continue to do even better in 2022 in terms of delivering great customer experience across channels and platforms. He also reiterated that "UnionBank’s goal is not just to help people survive, but to actually enable them to thrive in this new environment through the latest financial technologies; staying true to our commitment to “Tech-up Pilipinas!”

"I hope you are as eager as I am to welcome 2022. What I can promise you is that what you heard today is just the tip of the iceberg. There’s a lot more exciting news you can look forward to from UnionBank," Cuadrante concluded.

UnionBank CTO recognized as one of the biggest names in Data in the world

Tweet

Industry leader Informatica has recently named Union Bank of the Philippines (UnionBank) Senior Executive Vice President, Chief Technology and Operations Officer, and Chief Transformation Officer Henry Aguda as one of the thirteen globally recognized recipients of the first-ever Informatica Chief Data Officers (CDO) Awards.

Informatica has chosen its 13 awardees and honorees in its Awards across four categories, based on Informatica’s archetypes for data-driven leadership. Namely, these categories are the “Governance Gurus”, “Digital Innovators”, “Operational Optimizers”, and “Analytics Champions”.

Aguda was recognized as an honoree under the “Digital Innovators” category. He was recognized "for achieving 12x higher revenue by empowering customers to use digital banking services on mobile devices".

As a result of its incredibly fast and effective digital transformation, UnionBank is seeing strong evidence of financial inclusion: its customers are spending 6 times as much and maintaining 4 times higher outstanding balances, translating to 12 times higher revenue for the bank.

“I am very honored to receive this recognition from Informatica. Rest assured that we in UnionBank will continue to be at the forefront of digital innovation in the financial industry, both in the Philippines and in the region as well. This award is again dedicated to all UnionBankers who all believe in the responsible and effective use of data to serve our customers.” said Aguda. Aguda has been instrumental in the digital transformation journey of UnionBank leading several projects that aim to achieve the Bank’s ultimate goal of enhancing financial inclusion in the country.

Informatica is a software development company based in California that has launched several initiatives this year for the CDOs, who they consider as innovative business leaders. One of these initiatives is the CDO Awards that Informatica promises to be a new annual tradition. This event aims to acknowledge data-driven leaders who spearhead the new wave of innovation, as well as value creation in this data-led culture.

Nowadays, CDOs are appointed in two of three Fortune 1000 organizations. CDOs acknowledge the relevance of data as a strategic asset, and they are expected to manage and grow data-driven organizations and implement digital transformations while keeping up with day-to-day business needs.

UnionBank wins big at the 2021 Asian Technology Excellence Awards

Tweet

The bank secured the Philippines Technology Excellence Awards for E-Commerce - Financial Technology and AI - Financial Technology categories.

UnionBank once again proved to be the Philippines’ leading digital trailblazer after winning awards for E-Commerce - Financial Technology and AI – Financial Technology categories at the Asian Technology Excellence Awards 2021. The bank was recognized for its responsive efforts to assist e-commerce of micro, small, and medium enterprises (MSMEs) during the pandemic.

The bank won their E-Commerce - Financial Technology award for the successful launch of the Sentro Online Store Builder, a project aimed to help Philippine MSMEs launch their own online stores in the fastest and easiest way possible. The said project was conceptualized by the Bank’s fintech spinoff UBX, before the pandemic hit in 2019, but became more timely as more businesses moved their transactions online.

“When the pandemic hit, going online was no longer an option but a necessity. We decided to push our launch up as we knew that the Philippines needed us more than ever,” said John Januszczak, UBX President and CEO.

The key features of Sentro Online Store Builder were the integration of payment and logistic services to its banking features. These features enabled its users to have a smoother deal within the platform and have their transactions monitored in just one system.

“We made sure to pre-integrate payments and logistics services into Sentro so MSMEs would not have to think about who and how to integrate these necessary services. Because of our intimate understanding of the pain points of MSMEs, we were able to quickly sign up over 30,000 users,” Januszczak explained.

UBX aims to follow through with the initial success of the project and plans to add more logistics partners. It also aims to launch a Marketplace that comprises all stores built on the Sentro platform.

UBX also recognized that the success of the project for small-scale enterprises could be replicated and multiplied on a larger scale. This moved the company into helping the Philippines’ first Wedding Expo Organizer, Themes, and Motifs, take their physical expos online. The positive outcome of the expo then led to the launch of TheBridalMarketplace.com – The First and Only Wedding Marketplace in the Philippines.

“We soon realized that it was not just MSMEs that needed help going online. Larger enterprises, such as mall operators, event organizers, professional associations and many more, needed their businesses to get online... We currently have a long pipeline of businesses looking to launch their own marketplaces and we plan to go live with several more before year-end,” UBX said.

Meanwhile, the second award of UnionBank for the AI - Financial Technology category was earned for their innovative approach in revamping loan processing in the country through the SeekCap Alternative Credit Scoring Model.

SeekCap uses a technologically advanced credit scoring system that integrates the use of artificial intelligence and machine learning to create a risk-based lending approach. For UnionBank, this new system is the future of banking and shall overcome traditional limitations of the past. Through the implementation of this innovative system, UnionBank was able to manage risks better and offer loans in a more efficient manner to a wider range of individuals and small businesses—that profoundly needed lifelines during the uncertain pandemic economy.

“Most of the time, traditional credit and risk assessment methods simply assess loan applicants using hard-coded, preset rules, sometimes unfairly ruling out potential loan prospects. This is why we developed the new AI-powered credit scoring models. These credit scoring models intelligently and autonomously go through the application, alternative, and external data to create a more holistic, comprehensive profile of loan applicants with insights into customer behavior and needs,” said David Hardoon, UnionBank’s Senior Advisor for Data and Artificial Intelligence.

Hardoon explained that SeekCap helped both parties in multiple ways. It not only empowered previously underserved groups to have access to products and services that were not available through older conventional means, but it also increased the rate of efficiency of the banking process.

“Our new model is now giving us a monthly average approval rate of 54% - nearly double the performance of our old process. Overall, our loans services have generated over US$5 million (over P280 million) in new loans with low delinquency rates. In terms of customer experience, the loan approval process can take as short as one day if no issue is found in the application,” Hardoon explained.

UnionBank will receive the awards at the 2021 Technology Excellence Awards, the most prestigious awards programme in the region dedicated to technological projects and innovations. The award-giving body aims to recognize exceptional companies that are riding the digital disruption wave and leading the technological revolution and digital transformation journeys in their respective industries.

UnionBank UPAY for MSME: Helping level the playing field for the country’s growing number of MSMEs

Tweet

UnionBank recently held the 12th E-Media TalkTales as the Philippines’ foremost bank for MSMES discussed the critical role of digitizing payments in the country’s fast-evolving market.

Filipinos are now utilizing digital payments more than ever. Last month, the Banko Sentral ng Pilipinas reported that digital payments made up 20.1 percent of all transactions in 2020, more than double the figure from two years ago of 10 percent. This strong momentum is creating opportunities particularly for enterprising Filipinos who engage in e-commerce.

To help micro, small, and medium enterprises (MSMEs) in the country capitalize on this growing trend, Union Bank of the Philippines (UnionBank), the region’s digital trailblazer and the country’s foremost bank for MSMEs, has launched a groundbreaking feature that will make e-payments easier and secure not only for customers but also for MSMEs—the new UPAY for MSME.

This was unveiled at the Bank's 12th E-TalkTales media event, wherein UnionBank Vice President and MSME Segment Head Jaypee Soliman, and UnionBank Merchant Acquiring and Payment Gateway Head Gerry Austria led discussions on the critical role of digitizing payments in the country's fast evolving market.

Soliman began the discussions by talking about the state of digital payments in the country, citing the significant growth in the number of Filipinos who utilize these payment solutions. This is an indication that Filipinos are now more open to the idea of becoming a cash-lite society.

“This shows how the consumers are now transacting digitally. They are ready. They are there. The number of Filipinos having e-wallets and bank accounts continue to grow. But the question is, are the MSMEs ready to accept digital payments?"

This is where UPAY comes in. UPAY is a groundbreaking digital payments solution designed to make acceptance of multiple payment options accessible to MSMEs. It offers a fully integrated, single platform payment collection complete with other features that can make inbound payments easier for entrepreneurs, including the option to generate payment links with multiple collection channels, and the option to generate InstaPay QRPH for digital and physical channels.

"UPAY for MSMEs is a payment gateway that is embedded in our MSME Business Banking App. Businesses of all sizes and types now have the power to generate payment links, request payments, send it to their customers and provide multiple payment options, all these reconciled and credited to a single UnionBank account," Soliman said.

What makes UPAY convenient for accepting payments is that customers can choose their preferred payment channel either via Unionbank Online, InstaPay, Other Digital Wallets, Credit/Debit Cards and even over-the-counter through UnionBank’s expansive network of partner channels nationwide.

"When we conceptualized UPAY for MSMEs, we wanted to do away with all the different hassles that the merchant is experiencing to set up his payments, one of which is having to connect to a point-of-sale system, having to have different devices, having to have to download different apps," Austria said.

"Second, it's the efficiency in doing business. You don't need to be in your physical store to actually have a customer pay you. You can actually be vacationing somewhere else and someone wants to buy a product that they saw through your post on Instagram or Facebook. You can actually just create a payment link and send it to that customer, so it's very convenient for both the merchant and the customer," Austria added.

Through the new feature, UnionBank wants to level the playing field for MSMEs by making the feature accessible to them, which was previously only available to the bigger merchants as part of enterprise platforms that are too technologically demanding and expensive for smaller players.

 

For more information about the company and this article, please visit

www.unionbankph.com/msme/upay

 

 

ShopeePay Makes Top Ups Easier with BPI

Tweet

Enjoy fast and free top-ups when linking your BPI Online account to ShopeePay

Using mobile wallets has never been this easy! ShopeePay is the all-in-one e-wallet that you can use to Buy Load, Pay Bills, and Scan to Pay at multiple merchants nationwide as digital transactions continue to play a significant role in the new normal.

With more Filipinos adapting to the cashless lifestyle, ShopeePay offers users an easier way to top-up their wallets by linking their BPI Online account. Once you link your BPI Online account to ShopeePay, you can get fast and free top-ups with only 2 clicks! With its enhanced two-step verification process, users can enjoy safe and secure digital transactions. 

Here’s how you can link your BPI Online account with ShopeePay to enjoy these benefits:

Steps on how to link your BPI account:

1. Tap “Top-Up” on ShopeePay wallet

2. Click “Payment”

3. Select “Linked Bank Account” and choose BPI Online

4. Click on “Link Bank Account Now”

5. Enter your BPI username and password

6. Select one account

7. Linked BPI account will be displayed

Here’s how to top-up your ShopeePay wallet via your BPI account:

1. Input the amount to top up and select “Payment”

2. Select your Linked BPI Account and click “Pay”

3. Enter OTP and click “Pay”

4. Successful top-up will show complete details 

You can also top up your wallet safely and conveniently through debit cards, online banking, TouchPay machines, and other convenient channels.

ShopeePay continues to expand its network of partners and offerings to let you do more with just a few taps. Buy Load and stay connected on a budget with ₱10 mobile data for only ₱1 and discounted load at 10% off. Pay Bills at over 40 accredited billers and get up to 25% Bills Cashback when you pay for Meralco, Maynilad, and more. Scan to Pay and score ShopeePay ₱1 Deals from Puregold, Seaoil, Potato Corner, and more.

For more information about ShopeePay, and its perks and benefits, visit https://shopee.ph/m/shopee-pay.

RBank’s innovation provides instant cash to payroll clients

Tweet

Robinsons Bank once again proves that they are true to their vision of fulfilling the changing needs of their customers.

The Bank launched its new product, InstaBale, which allows eligible employees to make a cash advance on their upcoming salary credits.

Employees can skip filling up forms or long waiting time since they can easily apply for an InstaBale through the RBank Digital App. There’s no enrollment needed; and funds can be received in just a few minutes.

What’s more, InstaBale also offers unlimited and multiple availments within the cash advance limit.

Instabale offers a maximum cash advance limit of up to Php 200,000, depending on the approved limit per qualified employee.

The cash availed is automatically charged on the upcoming payroll, thus no need to worry anymore about missing the due date. Easy and convenient!

InstaBale is the perfect solution that will allow employees to have the financial flexibility they need as it provides a quick, safe, and reliable access to funds whenever they need.

InstaBale is only available to qualified employees with payroll account with Robinsons Bank Corporation. Download the RBank Digital app now!

Robinsons Bank is the financial services arm of the JG Summit Group of Companies, one of the largest conglomerates in the Philippines. It currently ranks 18th among universal and commercial banks in the country, with assets amounting to Php 151.215 Bn Bn as of December 2020. The Bank is recognized as the Fastest Growing Retail Bank in the Philippines for 2019-2010 by The Global Banking and Finance Review; Fastest Growing Commercial Bank in the Philippines for 2019 and 2020 by the Global Business Outlook; and the Best Commercial Bank in the Philippines for 2020 by the International Business Magazine.

For inquiries and concerns, you may reach Robinsons Bank through its Customer Care Center at (02) 8637-CARE (2273) or domestic toll-free 1-800-10-637-CARE (2273); or visit its website at www.robinsonsbank.com.ph. Like us on Facebook at www.facebook.com/robinsonsbank/ and join our Viber Community at www.bit.ly/RBankCommunity to get the latest updates.