by Unionbank Human Resources Group
In 2025, UnionBank’s ATM Management Team and Data Strategy Group joined forces to rethink how the Bank’s physical network could be optimized for both cost efficiency and customer reach. With rising operational expenses and underutilized assets across the ATM and branch network, the challenge was clear: transform infrastructure planning from intuition-based decisions to data-driven strategy, while delivering smarter, leaner, and more impactful operations.
The team launched a two-pronged initiative. First, a strategic cost optimization program was rolled out in March 2025 to address high-cost leases, idle units, and underperforming ATMs. Second, the IntelliLocate GeoAI Framework was developed to power smarter expansion and redeployment decisions using predictive modeling and real-world data.
A comprehensive review of ATM performance, lease agreements, and utilization metrics revealed key opportunities for improvement. Underperforming units and high-cost locations were flagged for removal, redeployment, or renegotiation. Meanwhile, IntelliLocate integrated diverse datasets—economic forecasts, urbanization trends, customer behavior, BSP financial data, and competitor locations—to identify underserved areas and high-impact expansion zones.
Key actions included:
- Early termination of Bank on Wheels lease, saving ₱14.7M (76% of remaining contract value).
- Binondo ATM removal and redeployment to Aboitiz Power, saving ₱1.8M.
- Redeployment of idle e-BOW units to Millennial Resorts, saving ₱180K.
- ATMaaS reduction in NE Greenhills and The Ark, saving ₱1M.
- Machine Performance Ranking Dashboard to identify low-performing ATMs/CRMs for redeployment.
- Branch Location Prioritization Scoring System to guide future expansion, projecting ₱500M CASA buildup and ₱60M in cumulative revenue over three years.
By August 2025, the initiative had already delivered ₱17.68 million in cost savings, while IntelliLocate enabled the redeployment of three underutilized ATMs and several CRMs,
generating ₱1.41M–₱3.35M in potential Year 1 benefits per unit. Early focus areas like Urdaneta and Antipolo validated the model’s accuracy and impact, setting the stage for scalable expansion.
Beyond financial gains, the initiative improved customer access by relocating ATMs to high-traffic partner locations, enhanced asset ROI, and empowered teams to make faster, smarter decisions. It also laid the foundation for enterprise-wide reuse, with subsidiaries like CSB, Petnet, BK, and Aboitiz Power entities like Veco beginning to adopt the framework.
This transformation reflects UnionBank’s commitment to high-tech, high-touch operations and high-performing talent—using data, technology, and collaboration to uplift lives through smarter banking infrastructure. It also supports the Aboitiz Group’s Great Transformation by embedding innovation and agility into the very backbone of the Bank’s physical network.
