Customers will have a new experience with a digital bank, according to the CEO.
The Union Bank of the Philippines (Unionbank) has yet to decide when its digital bank would be launched in 2022, but an executive stated it will serve as a platform for innovative customer experiences.
Unionbank chief finance officer Jose Emmanuel Hilado stated in a conference on Thursday night that there is no set timeframe for the launch of Union Digital Bank (UnionDigital), but that it will offer them a platform to build a new bank based on “first principles thinking.”
“How would you re-invent a bank if you weren’t bound by all the legacies that come with it?” “It’s like designing a completely new banking experience,” he explained.
UnionDigital is one of six financial organizations granted permission to operate as a digital bank by the Bangko Sentral ng Pilipinas (BSP).
The BSP set a limit of seven digital bank licenses to allow the regulator to closely monitor how the new banks perform and assess their influence on the sector.
Unionbank and its subsidiaries, according to Hilado, have current banking licenses that allow them to service even the country’s underprivileged population, but “our fundamental banking infrastructure is a legacy of the bank.”
“As a result, when you want to introduce a product, your basic banking system is a constraint,” he explained, “since your products today are not envisioned in the past.”
As a result, he claims, the digital bank provides a unique platform for them to deliver new generation goods to their consumers.