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BSP approves UnionBank’s digital banking application

July 21, 2021 - Wednesday 8:07 PM by MDM

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Union Bank of the Philippines announced Wednesday it bagged a clearance from the Bangko Sentral ng Pilipinas to create a digital-only bank.

In a regulatory filing, the listed lender of the Aboitiz family said the BSP approved its application to establish a digital bank to be known as UnionDigital, which would be a wholly-owned subsidiary.

This makes UnionBank the fourth player in the Philippines’ digital banking industry.

To note, the central bank previously granted digital banking licenses to LANDBANK’s Overseas Filipino (OF) Bank, Tonik Digital Bank and UNObank.

Other companies reportedly planning to have their own digital banks are Philippine National Bank, PayMaya’s Voyager Innovations and Rizal Commercial Banking Corp.

Last December, the BSP approved a circular designating a new bank category for virtual lenders.

But the BSP limited the number of players it would allow to initially operate to five.

Just recently, Governor Benjamin Diokno said the cap in number of digital banks may be lifted if there’s great demand for their services.