Bringing the future of banking to everyone
UnionBank achieved major headways in 2017 in its business model transformation anchored on customer businesses. Recurring income continues to drive profitability, with more than 50% of revenues now coming from retail segments.
These impressive financial results were a result of building communities and embedding innovative banking solutions around ecosystems of large institutions. This approach, which is anchored on our shared purpose of “Making Da Diff” in the lives of others and communities we serve, enabled us to extend financial services to the ecosystems of our anchor clients. It is an efficient way of expanding our customer reach.
However, in a country where more than 65% of the population do not have bank savings and more than 70% borrow from informal lenders, banks still have much to do to uplift the lives of ordinary Filipinos. The challenge for UnionBank is how to leverage on technology to extend smart banking solutions to the underserved mass market segment. Our aim is to graduate from simply providing traditional cash management solutions to developing platforms that address specific pain points of communities.
We continue to leverage on our link with corporate clients’ supply chain. Through data science, we were able to harness payment information and identify leads that we can pursue in the SME segment using behavioral analytics. We tapped the expertise of our growing number of relationship managers to probe on the needs of our leads in order to further widen our geographic scope.
Early on we recognized that the rules of the banking game have changed. This has challenged the Bank to step up and stay relevant by going digital – “digitize or perish!” Over the past year, we have made great progress against our goals and continue to accomplish the milestones in our FOCUS 2020 roadmap. This we do as we remain constant in our purpose to elevate lives and fulfill dreams through Smart Banking in the spirit of Ubuntu, in consonance with the nationwide aspiration of inclusive prosperity.
By conducting a series of fora with industry leaders through our UREKA program, we facilitated the use of E-Commerce to promote the growth of a considerable number of MSMEs. Now, we are not just connecting them to end-consumers but creating a network among local businesses where each can have access to others’ products and services.
With fintechs as our partners, we implemented an “Open API” platform which speeds up time-to-market. Leveraging on the API technology, we hosted several hackathons to encourage communities of developers, fintechs, and digital entrepreneurs to connect with the Bank’s backroom services as they create apps and programs that address challenges on banking, financial inclusion, and many more.
Given the successful business and operating model it has developed, CitySavings embarked on replicating the same plan to mass market segments. It continues to expand outside the teachers segment and endeavors possible acquisitions to fast-track its capabilities in providing financial services to the underserved Filipinos.
Digital transformation will continue to be at the core of our strategy as we look forward to sustaining the same momentum in 2018. Knowing that the expansion of digital channels will be crucial in reaching more communities, we will digitize to the core – complete our enterprise architecture and build organizational capabilities – to provide superior customer engagement and conquer new frontiers for inclusive growth.
Edwin R. Bautista
President & CEO
Union Bank of the Philippines
Amidst the challenges of 2017, City Savings Bank maintained its position as the fifth largest thrift bank in the country by asset size, and remained as the most preferred bank of teachers. The bank now provides a range of mass market finance products: not just to public school teachers, but also to pensioners and OFW beneficiaries.
In 2018, we will continue to be driven by a higher purpose, adhering to our Simple is Good philosophy. The Bank will continue to provide quality financial assistance and seek new opportunities for financial inclusion to underserved sectors.
Catalino S. Abacan
President & CEO
City Savings Bank