Union Bank of the Philippines has obtained approval from the country’s regulator Bangko Sentral ng Pilipinas (BSP) to establish a wholly-owned digital banking subsidiary to be known as Union Digital Bank. The bank had entered the digital banking business through platform EON long before the issuance by the banking regulator of the framework to govern this new distinct classification of banks. Specially designed for digital commerce, EON started as a debit card product over a decade ago but launched as a mobile-only platform in 2016. This was meant to be UnionBank’s primary product for bringing to formal banking channels the unbanked and underbanked segments through its partnerships with cooperatives and local governments for loans and aid disbursement. Since then, EON has enlisted over a million cardholders. It also operates small lending activities on an experimental basis. By getting its own banking license, EON can operate as a distinct banking platform without having to start from scratch.
