In today's ever-evolving digital landscape, the banking industry stands at a crossroads, poised for a future shaped by innovation and technological progress. Edwin R. Bautista, the President and CEO of UnionBank of the Philippines, shares a remarkable journey toward becoming the Philippines' premier digital bank, emphasizing a commitment to innovation, adaptability, and strategic partnerships, particularly with Huawei.
The transformation journey kicked off in 2016, sparked by a stark warning from a financial consultant: "Digitize or perish." In the CEO's words, "We realized that inaction was not an option; we had to act decisively to remain relevant." To navigate this path, a diverse group of futurists and thought leaders, including luminaries such as Thomas Frey from Google and Brett King, author of "Bank 3.0," provided insights into the ongoing digital disruption, reinforcing the urgency of swift action.
The transformation plan, structured as a five-phase journey, revolved around a vision of prioritizing customer experience. The first phase, Agile Transformation (2016-2018), focused on contextual lending and the need for a resilient enterprise architecture. Mr. Bautista noted the initial challenges, explaining that "simply applying technology was not enough," and a robust marketing effort was crucial, which proved prescient in the era of COVID-19.
The second phase involved launching UBX, their fintech subsidiary, in 2019, with Huawei's technology playing a crucial role in this venture. The third phase was a game-changer, with Union Bank acquiring the assets of Citibank Consumer Business in the Philippines in 2020. In 2022, UnionDigital, their digital bank, took center stage in the fourth phase, emerging with the largest loan portfolio among digital banks in the Philippines and a path toward profitability.
The ongoing fifth phase centers on the creation of ecosystems through collaboration with various stakeholders, fostering innovation and partnership. Union Bank's focus has shifted from traditional assets and loans to customer count, with a significant increase in their customer base, positioning them as a leader in digital platforms, mobile apps, and consumer lending.
The transformation journey has translated into impressive financial success, with a total shareholder return of 112% over three years. Mr. Bautista underlines that "even in the digital age, banking remains a marketing game," and Huawei's technology has enhanced their capabilities. Real-time risk assessments, supported by Huawei's technology, reinforce their commitment to sound financial practices.
In conclusion, UnionBank's digital transformation journey highlights the synergy of innovation, adaptability, and strategic partnerships, with Huawei playing a pivotal role. As technology continues to evolve, Union Bank remains committed to shaping the future of banking and fostering inclusive prosperity across the nation, with their customers at the forefront of their mission.
Qorus returns to Asia for a not-to-be-missed event. Join us in Bangkok.
