UnionBank bridges the gap for unbanked Filipinos amidst COVID-19 times

By Edil Corneille

The Union Bank of the Philippines (UnionBank) has increasingly rolled out cash-out options via 11,000 remittance counters across the Philippines, including in rural areas where most of the unbanked and underserved population are located. These sections are especially vulnerable in the current ongoing COVID-19 crisis.

“With the onset of this pandemic, it has become crucial that our products and services quickly adapt to the challenges presented in this new digital normal,” said Edwin Bautista, UnionBank President and Chief Executive Officer. “This cash-out service is just one way for UnionBank to demonstrate its commitment to financial inclusion as we continue venturing forth in tech-ing up the Philippines.”

The bank identified that enabling customers to send money from home via its app to remittance counters in underserved areas was the correct course of action. This has addressed the challenging issue of sending funds to families and relatives living in provinces especially in far-flung areas where ATMs and bank branches are scarce or even unavailable.

UnionBank leveraged existing partnerships with Philippine FinTechs such as Dragonpay and Coins.ph, as well as remittance centres Cebuana Lhuillier, LBC, PeraHub and Palawan Express.

“Through collaboration with various UnionBank teams and our fintech partners, we have demonstrated that the spirit of community is very much alive as we address the needs of our countrymen,” said Arvie de Vera, UnionBank Senior Vice President and FinTech Group Head. “This is a testament that we can use technology and digital services to ensure that no one gets left behind, especially as we weather through this ongoing crisis.”

Integrating the service on UnionBank’s app was made possible through Application Programming Interfaces (APIs) exposed in the bank’s API Developer Portal/ Marketplace. This also enabled rural banks, who are currently on the UnionBank’s i2i network, to connect to the payout counters, thereby allowing their account holders to send or withdraw funds from non-traditional outlets.

UnionBank secured an approval from the Central Bank of the Philippines to perform a live pilot remittance and roll out the feature in the UnionBank Online app.

Upon the launch of the service, UnionBank noted an immediate high uptake by its customers. At the end of April 2020, with all major remittance centres available through the service, transactions have more than doubled. The bank recorded a 20 per cent increase in daily digital account opening as a result of this feature.