Tag: UnionBank

The service of retail banking plays a significant role in consumers’ financial lifestyle, and as the industry continuously witnesses disruptions, we can expect players in retail banking to continue to undergo considerable development and transformation. This then opens up the competition to devise newer strategies to strengthen businesses and provide customers with an enhanced banking experience.

Last December 2021, we saw this into fruition in the Philippine market. UnionBank, one of the leading banking institutions in the Philippines, specifically, the seventh-largest publicly-listed bank in the country, has revealed that it has decided to acquire Citi’s consumer banking business in the country.

A few months prior to this, Citi has unveiled its new strategy to move its focus to its Institutional Clients Group in April 2021, driving them to finally let go of their consumer banking business in the Philippines. The acquisition by UnionBank entails a ‘share and business transfer agreement’ with various subsidiaries of Citi. Through this, UnionBank’s transactions will now include Citi’s credit card, personal loans, wealth management, and retail deposit businesses. It will also now own Citi’s real estate interests in relation to Citibank Square located in Eastwood, one of Manila’s main shopper destinations; three full-service bank branches, and five wealth centres, as well as two bank branch offices.

For MARKETECH APAC‘s industry deep dive The Inner State, we have invited Albert Cuadrante, Union Bank of the Philippines’ chief marketing officer, to tell more about his insights regarding the marketing implications of the recent acquisition.

Impact of Citi’s exit in the Philippines’ retail banking industry

UnionBank is widely known as one of the most digitally transformed and future-forward banks in the country, with over four million users on its digital platform, while Citi has had the third-largest credit card franchise in the country and is a pre-eminent wealth management provider.

Cuadrante believes that, with the above in mind, the move is a very positive development for the retail banking industry because ultimately, the “real winners here are the customers.” 

He further shared that there is also a minimal overlap, particularly in credit cards which accounts for [a] large portion of Citi’s customer base.

“The clear synergies that this acquisition presents us with opportunities to come out with even better products and further elevate our level of service to customers,” noted Cuadrante.

Uplifting UnionBank’s brand positioning

As per the effects of the acquisition on UnionBank’s brand positioning, Cuadrante said that UnionBank’s aspiration is to be a ‘great retail bank’ focused on growing its consumer retail banking business and led by its digital transformation initiatives. With the recent acquisition, he believes that this will provide them with a transformational opportunity to fast-track their growth aspirations in the retail banking segment.

With Citi being the country’s largest foreign bank and its consumer business offering a superior suite of product offerings in credit cards, personal loans, and wealth management, Cuadrante trusts that UnionBank will be able to benefit from Citi’s expertise in product development, spending management, data intelligence and modelling, portfolio managing and cross-sell, and sales and distribution. 

“This will enable UnionBank to effectively take the business to the next level and further strengthen our value proposition to our customers,” he said.

Citi’s customers transitioning to UnionBank

In terms of adopting Citi’s consumer banking customers, Cuadrante noted that UnionBank is committed to ensuring the quality of products and level of customer service Citi customers are currently enjoying.

He said that customers will have access to UnionBank’s digital channels, a wide range of product and service offerings, and branch network, over and above the existing branches, products, and services of Citi. In addition, customers will be able to benefit from its data-driven decision-making and omnichannel platform offering to enjoy personalised offers tailored to their needs.

Meanwhile, UnionBank plans to retain Citi’s good performance amongst its clients by treating the Citi portfolio as a separate business unit until such time when they are able to fully integrate the systems and practices between UnionBank and Citi.

“Citi, on their part, is committed to supporting the transition and shall continue to provide regional support until we are able to migrate their entire consumer business to our systems and platforms,” added Cuadrante.

The long-term benefit of the acquisition to UnionBank

UnionBank is expecting results in significant synergies for them, particularly from the opportunity to cross-sell products to a larger combined customer base, helping them gain scale and increase profitability and grow their penetration rate.

Cuadrante said that the combined credit card portfolio will bring them to #4 in the industry, up from #10 currently, and within striking distance of the top 3. Citi also has close to one million customers, ranging from the mass affluent to the high net worth, which complements their over 10 million customer accounts today.

“The Citi customer base is largely incremental as there is minimal overlap, particularly in credit cards which accounts for [a] large portion of Citi’s consumer business,” he added.

Manila, Philippines — UnionBank, the seventh-largest publicly-listed bank in the Philippines, has announced that it will now be acquiring Citigroup’s (Citi) consumer banking business in the country. 

In April this year, Citi shut down its consumer business in the country, including 12 other markets such as Australia, China, India, and Indonesia to move the focus to its Institutional Clients Group. For the acquisition, UnionBank said it has entered into a ‘share and business transfer agreement’ with various subsidiaries of Citi.

UnionBank’s transactions will now include Citi’s credit card, personal loans, wealth management, and retail deposit businesses. The acquisition also includes Citi’s real estate interests in relation to Citibank Square in Eastwood, 3 full-service bank branches, 5 wealth centers, and 2 bank branch offices.

Erramon Isidro Aboitiz, UnionBank’s chairman, said that the acquisition further cements its position as a leading bank in the Philippines, and will help fast-track its growth aspirations in the retail banking segment.

Meanwhile, Edwin Bautista, UnionBank’s president and chief executive officer, commented that they look forward to leapfrogging their credit card business and significantly expanding their banking business in the higher-end segment of the consumer market.

“As we embark on this journey, we are committed to retaining all of Citi’s key talents and upholding the superior customer experience that Citi has delivered to its customers over the years,” said Bautista.

UnionBank said that Citi will continue to operate its consumer banking business in the Philippines until the completion of the acquisition, which is expected to close in the second half of 2022. Moreover, approximately 1,750 Citi employees, including senior management, are expected to join UnionBank next year.

Manila, Philippines – One of the leading commercial banks in the country, UnionBank, has partnered anew with creative advertising agency FCB Manila, to launch a new campaign titled ‘Love The Way You Bank’.

Earlier this year, UnionBank and FCB Manila have taken the viewers on a tour in a film inspired by Dante Aleghieri’s Divine Comedy, where the pains of banking were visualized by the circles of hell. 

In the newly launched film, which was created in collaboration with Director Marius Talampas for the second time, viewers will be taken through the usual stages of a romantic relationship, starring the two lead protagonists – the customer and the app. Bearing in mind the vision of telling the love story as if it were a real-life documentary, the film lets viewers really feel the ‘love’.

Tin Siapno, UnionBank’s first vice president and digital marketing head, commented that they love how this film mimics how customers feel after using the UnionBank app. 

“It feels good to know that UB Online delivers on its promise and brings so much joy to our customers,” said Siapno. 

Meanwhile, Rab Evangelista, FCB Manila’s creative director, shared, “An idea can really come from anywhere. In the previous campaign, it came from hell. This time around, it came from the heart.”

Manila, Philippines – With the goal of continuing to further tech-up Filipino businesses, UBX, the fintech unit by UnionBank that provides opportunities and access for all by building digital financial solutions for individuals and SMEs, has just recently launched ‘Sentro Build’, to enable the growing community of merchants that gather in well-known marketplaces. 

‘Sentro Build’ is the latest version of UBX’s ‘Sentro’. ‘Sentro’ is an online shop builder for entrepreneurs and MSMEs, while the new ‘Sentro Build’ provides marketplace owners, organizers, and their communities an easily customizable online marketplace.

Merchants can join the ‘Sentro Build’ via an invite to the marketplace from the marketplace owner or by applying to become a seller to the marketplace, while customers can simply visit the marketplace website to look through the merchandise.

Through ‘Sentro Build’, marketplace owners have full control over the appearance and branding of their marketplace through the platform’s easy-to-use administration features. It has a built-in payment gateway powered by Bux providing multiple payment options via over 50,000 over-the-counter channels, online banking, and e-wallets, as well as debit, and credit card payments. In addition, it has pre-integrated delivery services powered by MrSpeedy.

“There are many industries affected by the pandemic. Those severely impacted include the events, expo, and bazaar segments. Traditionally, this industry required physical gatherings which might not be happening any time soon. We have the technology that can now empower companies to create their own online marketplaces,” said Bjorn Pardo, UBX’s head for SME Ventures and Sentro’s lead for Venture.

According to UBX, the events industry was one of the hardest hit during the pandemic, and traditionally requiring mass physical attendance, events, and expos have been severely restricted.

With this, ‘Sentro Build’ has kicked off with Themes & Motifs last 24 July 2021. Behind the launch are the organizers of The Wedding Inspirations Co. and the original Philippine Wedding Expo. The virtual Bridal Fair national roadshow and its online mall dedicated to the wedding industry is called ‘The Bridal Marketplace’.

When asked by MARKETECH APAC how ‘Sentro Build’ helped Themes & Motifs transition virtually, Pardo said, “Themes & Motifs events are primarily done physically in malls and convention centers. Now with their marketplace up and running, they can virtually conduct their own bridal fair from anywhere in the Philippines. Also because of the marketplace we’ve built, customers can easily view and check out their purchases within the marketplace.”

Meanwhile, Sharon Fabian, the managing director of Themes & Motifs, shared that ‘Sentro Build’ allowed them to quickly establish TheBridalMarketplace.com, a comprehensive online mall for soon-to-weds that capitalizes on Themes & Motifs long-standing partnership with big and reputable names in the local wedding industry.

“It provided us with full integration to pandemic-friendly payment methods and a seamless connection to a product delivery system. Also, its easy-to-use e-commerce platform is perfect for our online bridal fair roadshow which showcases different wedding suppliers in different regions of the Philippines,” said Fabian.

Aside from ‘Sentro’ and ‘Sentro Build’, UnionBank’s UBX has also launched other digital platforms, namely, digital transformation package ‘i2i’, end-to-end payment platform ‘Bux’, online lending marketplace ‘SeekCap’, and technologies for visionaries ‘Q Lab’.

Manila, Philippines – As contactless payments have emerged as an essential solution for businesses during the pandemic, online payment platform for SMEs in the Philippines, JazzyPay, has partnered with one of the leading commercial banks in the country, UnionBank, enabling its onboarded businesses to reach a wider audience and thus to attract new users.

JazzyPay enables various businesses to accept cashless payments across credit and debit cards, e-wallets, and online baking, as well as over-the-counter cash deposits. The platform now has a total of 27 payment methods including UnionBank.

Through the partnership, JazzyPay customers can settle their payments using their UnionBank accounts, while UnionBank Online users can now pay for local and essential businesses registered with JazzyPay.

Aside from being a unified online payment platform, JazzyPay will also enable businesses to send online invoices to their customers without having to use third-party invoicing services. 

According to Edwin Bautista, the president and chief executive officer of UnionBank, transactions done through the bank’s mobile app rose from 40,000 in January 2020 to nearly 1 million by December 2020. As a part of its ‘Tech up, Pilipinas’ advocacy, UnionBank also recently launched its mobile banking app for SMEs, becoming the first SME-focused banking app in the Philippines.

Meanwhile, Kathleen Acosta, the co-founder and chief operating officer of JazzyPay, believes that UnionBank’s constant efforts in providing excellent financial services especially to SMEs have been evident through their recent projects. 

“As a payment platform that aims to empower more local businesses in the Philippines, JazzyPay is honored to be able to partner with an innovative company that shares the same vision of growth for SMEs and underserved businesses,” said Acosta.

Manila, Philippines – In response to the steady recovery of the Philippine banking industry and to provide better funding opportunities for small businesses, UnionBank has announced the launch of its new UnionBank SME Banking app, aimed at the country’s growing small and medium enterprises (SMEs).

Through the new banking app, UnionBank’s newest innovation aims to continue empowering SMEs to embrace digital transformation and unlock more opportunities for them to pivot, grow, and thrive in the now digital normal. 

Furthermore, It also underscores UnionBank’s primary goal of using its digital expertise to extend more financial services to all Filipinos, including the strategically-vital SMEs who comprise about 99% of the country’s registered businesses. 

“Specific segments of the sector’s market continue to be in increasingly vulnerable positions. Some customers face temporary financial strain. Individual and corporate borrowers may lack sufficient money. Those with special servicing needs, such as the elderly, require customized assistance, especially with the transition to digital banking. SME owners are focusing on keeping their business afloat by seeking efficient and accessible banking solutions,” the bank said in a press statement.

Through the UnionBank SME banking app, any business owner can open their own checking account online with ease and convenience. There is no fuss as the account will be available and ready to use within the same day and there is no need to fill out any forms or visit a branch. The app also helps SMEs manage all their financial operations with just a few clicks. 

“At the end of the day, we’re all in this together and we want to help all Filipinos be financially inclusive. We are a digital partner that Pinoy SMEs can trust and rely on amid any challenge,” said Jaypee Soliman, vice president of the SME Segment at UnionBank.

UnionBank also offers other SME-related services including their online lending marketplace SeekCap that allows easier lending for SMEs, and business digital platform hub UnionBank GlobalLinker which integrates their business inventory, team and knowledge on the local SME scene all in one platform.

Manila, Philippines – Local-based private bank UnionBank has been honored the 2020 Philippines Excellence In Customer Experience by market research company Frost & Sullivan for its efforts in leveraging customer experience solutions in the banking industry through digital innovation.

Frost & Sullivan Best Practices awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. For UnionBank, the recognition goes to their excellence in ATM Ambience Experience and in Online Customer Experience, specifically their “initiatives to stay ahead of the demand curve by offering best-in-class, personalized customer experience with robust 24/7 services.”

Frost Sullivan UnionBank Award
The award is in recognition of bank’s initiatives to stay ahead of the demand curve by offering best-in-class, personalized customer experience with robust 24/7 services.

“The bank has used the customer experience framework of process, space, and people in its digitization process, bridging offline with online to deliver a seamless customer experience,” said Frost & Sullivan. 

Furthermore, the firm recognizes of UnionBank’s leverage of artificial intelligence (AI) and 5G technology to better anticipate customer preference and behavior.

“UnionBank has ramped up its digitization efforts in the past few years. A customizable system, self-service options, and personified robot assistant are among the digital options available to customers, half of whom now transact digitally. The bank also became the first in the Philippines to launch the smart branch leveraging 5G technology for seamless connectivity with internet of things (IoT)-enabled services,” said Edurra Talib, senior research analyst for Frost & Sullivan.