UnionBank of the Philippines plans to integrate its digital banking subsidiary UnionDigital Bank and fintech arm UBX into its parent operations, as the lender looks to consolidate its digital services and improve operational efficiency.

The bank’s board has approved the proposed integration, which remains subject to clearance from the Bangko Sentral ng Pilipinas (BSP) and other relevant authorities.

UnionBank has not announced a completion date but said customers will continue to have access to services while the proposed changes undergo regulatory review.

What the integration means for customers

UnionDigital operates as UnionBank’s digital banking arm, while UBX develops financial technology solutions designed to extend access to financial services beyond traditional bank branches.

Bringing the businesses under UnionBank’s parent operations is intended to consolidate the group’s digital capabilities and make it easier to deliver banking products and financial services through its existing platforms.

UnionBank President and CEO Ana Delgado said the integration is expected to help the bank serve more customers and make greater use of the capabilities developed by its subsidiaries.

The bank said it would guide customers through any changes at the appropriate time and work to minimize disruption during the transition.

However, UnionBank has yet to disclose specific changes to UnionDigital or UBX accounts, applications, products, or customer procedures. Any changes will depend on the integration plan and the required regulatory approvals.

UnionBank reports ₱9.9 billion in nine-month income

The proposed integration comes as UnionBank reported a 53% increase in net income to ₱9.9 billion in the first nine months of the year.

Net revenues rose 8% to ₱65.5 billion, supported by stronger interest earnings, higher fee income, and improved operating efficiency. The bank’s retail customer base also exceeded 19.5 million.

Net interest income increased 9% to ₱51.9 billion, while its net interest margin improved by 34 basis points to 6.9%.

UnionBank attributed part of the improvement to a 5% increase in current account and savings account deposits, which provide banks with a relatively low-cost source of funding.

Consumer loans accounted for 62% of the bank’s total loan portfolio, nearly three times the industry average, reflecting its focus on retail lending.

Non-interest income also grew 5% to ₱13.6 billion, with fees and commissions reaching ₱11.9 billion, up 5%.

Income from wealth management and bancassurance surged 52%, accounting for 18% of total fee income.

What happens next

The integration will proceed only after UnionBank secures the necessary regulatory approvals. Until then, customers should continue to follow official announcements from UnionBank, UnionDigital, and UBX for updates on any changes to their services.

For customers, the key details to watch are whether the consolidation will change how they access their accounts, use digital banking applications, or manage existing financial products. UnionBank has not yet provided a detailed transition timetable.