UnionDigital Bank to be more selective in lending

UnionDigital Bank, part of UnionBank, plans to be more selective in granting loans this year to maintain a low nonperforming loan (NPL) ratio while expanding its client base.

Danilo 'Bong' Mojica II, president and CEO of UnionDigital Bank, said the bank will use alternative data such as timely payment records for credit assessment to make loans more accessible.

As of end-2024, UnionDigital Bank's net NPL ratio was 12.12%, with total loans at P5.92 billion, significantly higher than the industry average but within single-digit numbers according to Mojica.

The digital bank recently rebranded and launched a financial literacy program to reach underserved sectors such as sari-sari store owners and daily wage earners.

UnionDigital Bank also announced new products including a basic savings account, time deposit product, payroll loans, and a Visa-powered virtual debit card.

In development are additional features like early wage access and microinsurance offerings to help users manage unexpected life events.