UnionBank launches fintech subsidiary UBX for more inclusive banking
Union Bank of the Philippines (UnionBank), the country’s Best Digital Bank, has launched its fintech subsidiary, UBX that houses its technology initiatives, platforms and investments in fintech companies.
UBX is expected to more quickly develop and create new opportunities, and expand e-commerce access for the unbanked and underbanked, by seamlessly connecting these communities with extensive and “embedded” financial services. UBX aims to create a world where financial services are invisible, flawlessly blended into the experiences and activities that truly matter to businesses and people.
Officially registered with the Securities and Exchange Commission last December 2018, UBX will focus on embedded banking; ecosystems and platforms; and collaborating with experts and building the best experiences, especially for the unbanked and underbanked.
Embedded banking refers to banking that is made through a platform other than a bank – such as mobile apps and the internet of things (IOT) – which are expected to replace traditional banking channels in the next few years. Because its effortless and very simple for consumers, this is also expected to dramatically reduce the number of the country’s unbanked in a short period of time.
Concurrently, UBX is building and investing in open platforms that allow others to gather together and innovate, adding value whether they collaborate or compete.
“UBX is a manifestation of Transformation B of UnionBank’s Dual Transformation Roadmap, where we want to co-create businesses and financial services that technology will unlock,” said UBX president and CEO John Januszczak, referring to UnionBank’s transformation journey started in 2016. The bank’s “Transformation A” focused on becoming the country’s “Best Digital Bank” – a target accomplished and validated via prestigious awarding bodies such as Asiamoney and The Asset bestowing the said title on UnionBank.
“It’s a new entity that operates separately from UnionBank and is designed to be like a fintech company. With UBX, we want to usher in the age of embedded banking in the Philippines, where banking services are woven into the very fabric of everyday life,” Januszczak added.
Because UBX is fintech company, he said there is more freedom involved when it comes to the financial products and services that they can offer.
“One of the numerous advantages of being a fintech company today is that regulation is not as strict compared to banks. This allows more room for thinking “outside-the-box” and implementing new services that those in traditional banking and finance may consider too “out-in-left-field”. That is what we want to happen with UBX, “Januszczak said.
UBX believes the future of financial services provides opportunity and access for all, and vows to bring move financial services to a broader community physically, logically and economically.
Initially, UBX will leverage on two products incubated in UnionBank. These are UnionBank GlobalLinker which is a B2B networking platform and Project i2i which is a blockchain-supported platform that connects rural banks and cooperatives to order financial institutions in the country.
Meanwhile, UBX also inked its first investment deal with technology solutions firm Shiptek Solutions Corp. recently. Shiptek is the developer of end-to-end digital logistics platform known as XLOG and is owned by the Ynion Group which has been in the logistics business for over two decades.
UBX’s expertise in technology development and blockchain is seen to further power XLOG’s end-to-end supply chain solution that consolidates shipping, warehousing, trucking, and customs brokerage.
Januszczak said they will endeavor to co-create innovations with like-minded companies who are obsessed in forging transformative experiences for customers.
“Apart from devveloping platforms to go to market with business models that are beyond banking, we will also invest in capabilities and platforms that share the same objective, “Januszczak said.
