MANILA, Philippines — Aboitiz-led Union Bank of the Philippines (UnionBank) has received the approval of the Securities and Exchange Commission (SEC) to put up a digital banking subsidiary.
In a disclosure to the Philippine Stock Exchange (PSE), UnionBank said the SEC approved the articles of incorporation and by-laws of Union Digital Bank Inc. last Nov. 25.
UnionBank president and chief executive officer Edwin Bautista earlier said the wholly owned subsidiary would start commercial operation next year.
The Aboitiz-led bank has raised its authorize capital to P35.31 billion from P23.11 billion to raise funds to bankroll future growth opportunities.
Last July 15, the Bangko Sentral ng Pilipinas (BSP) awarded a digital banking license to UnionDigital.
Last Aug. 19, BSP Governor Benjamin Diokno announced that the Monetary Board approved the closure of window for the establishment of digital banks and limiting the number of licenses to seven.
The central bank issued Memorandum 2021 – 046 wherein the BSP approved the closure of application window for new digital banks for three years, including converting banks, starting Aug. 31.
The moratorium allows the BSP to monitor the performance and impact of digital banks on the banking system and their contribution to the financial inclusion agenda.
A total of nine other applicants that managed to beat the Aug. 31 filing deadline failed to qualify for the seventh and last digital banking license slot after failing to submit complete requirements to the regulator.
Under the Digital Payments Transformation Roadmap, the BSP aims to convert 50 percent of total retail transactions to electronic channels and raise the number of Filipino adults with bank accounts to 70 percent by 2023.