by UnionBank Human Resources Group
UnionBank’s AML Center of Excellence (AML COE) is a transformative initiative jointly led by the Chief Data Office (CDO) and Branch Channel Management (BCM), under the leadership of Magz Magbanua and Ronaldo Batisan. More than a compliance upgrade, AML COE represents a strategic leap in how the Bank defends against financial crime— centralizing operations, integrating advanced analytics, and streamlining governance to build a more resilient, responsive, and trusted institution.
The shift to a centralized model unlocked significant enterprise-wide value:
- ₱200M in freed-up branch capacity, allowing frontliners to focus on customer engagement and cross-selling.
- ₱53M in cost avoidance through optimized full-time equivalent (FTE) allocation.
- 10% reduction in overtime and special duty allowances, reflecting improved workload management.
- Clearer roles, better tools, and stronger purpose for employees, enhancing productivity and morale.
- Strengthened customer protection and institutional trust, reducing risk exposure and reinforcing UnionBank’s reputation for ethical leadership.
Operational Excellence and Strategic Collaboration
The AML COE team played a pivotal role in the success of the AML Centralization Project. Tasked with reviewing and aligning transaction monitoring procedures, they conducted detailed assessments of existing workflows, identified process gaps, and proposed enhancements that improved both efficiency and regulatory compliance.
What set the team apart was their ability to collaborate effectively across functions— including Technology, Risk, and Operations. They served as a bridge between compliance and technical teams, translating regulatory requirements into actionable system configurations. Their professionalism and responsiveness earned consistent praise from partner teams, with Technology commending their clarity and Operations recognizing their support during training and post-implementation phases.
The team also addressed the challenge of excessive false positives in AML alerts by implementing an AI-powered risk scoring model. This allowed:
- Manual investigations to focus on high-risk alerts.
- Automatic dismissal of low-risk alerts.
- A 40% reduction in total alerts, significantly decreasing time spent on manual reviews.
This not only improved operational efficiency but also empowered employees to focus on more meaningful, high-impact work—reducing burnout and enhancing job satisfaction.
Customer Trust, Community Impact, and Ethical Banking
By enhancing the accuracy of AML alerts, the team strengthened UnionBank’s ability to detect and prevent financial crimes—protecting customers from fraud and reinforcing trust in the Bank’s commitment to safeguarding their assets.
The initiative also aligned with UnionBank’s broader sustainability and inclusion goals. It demonstrated how technology can be used to promote ethical banking practices and contribute to a safer financial ecosystem for all stakeholders.
Empowering People and Building a Culture of Growth
The AML COE team didn’t just build systems—they built people. Through intentional mentorship, coaching, and opportunity creation, they uplifted individuals and strengthened team cohesion.
Junior analysts were mentored through structured programs, accelerating their development and leading to promotions and leadership track placements.
A newly appointed team lead received personalized coaching, eventually spearheading a successful process improvement initiative.
Regular learning huddles created safe spaces for sharing insights, asking questions, and fostering psychological safety.
This collective impact led to:
- A culture of growth and empowerment, driving higher engagement and retention.
- A resilient and agile team, capable of adapting to challenges and driving innovation.
- Elevated organizational performance, as empowered employees contributed more strategically and collaboratively.
Courageous Conversations and Inclusive Leadership
The team consistently demonstrated courage by initiating open, honest conversations around sensitive topics—from team dynamics to performance challenges. They modeled vulnerability, invited diverse perspectives, and normalized real-time feedback—creating a culture where feedback was seen as a tool for growth, not criticism.
In one example, a cross-functional meeting was initiated to resolve a spike in false positives. Through transparent sharing of perspectives, clarification of objectives, and collaborative solutioning, the teams aligned on a revised threshold model and established a feedback loop to monitor alert quality—resulting in improved outcomes and stronger cross-team trust.
A Strategic Legacy of Innovation and Impact
The AML COE is not just a compliance success—it is a strategic legacy. It positions UnionBank as a trusted industry leader in financial crime defense, while reinforcing its commitment to innovation, ethical governance, and customer protection.
By operationalizing its purpose and values, UnionBank has built a future-ready AML framework that uplifts lives—not only by safeguarding financial systems, but by empowering the people who protect them. This initiative exemplifies how the Bank continues to lead with integrity, act with purpose, and build systems that serve both business and society.
