MANILA - Union Bank on Monday said the Securities and Exchange Commission has approved the incorporation of its digital bank UnionDigital.

UnionDigital earlier secured a license from the Bangko Sentral ng Pilipinas (BSP) to operate as a digital bank. The BSP gave limited slots for the initial phase of digital bank operations in the country.

"Please be informed that Union Bank of the Philippines received today, November 26, 2021, the approval of the Securities and Exchange Commission on November 25, 2021 of the articles of incorporation and by-laws of UNIONDIGITAL BANK INC. (“UnionDigital”), a wholly-owned subsidiary of UnionBank," the company told the stock exchange.

• BSP approves UnionBank application to create digital bank

UnionDigital is among the 6 digital banks approved by the BSP to operate digital banks as part of its efforts to boost digital payments in the country, along with GoTyme, Tonik Bank, UnoBank, OF Bank and Maya Bank.

Digital banks have no physical branches and are designed to ease the unbanked's formal entry into the financial system.

The BSP earlier said the pandemic has accelerated the usage of InstaPay and PESONet with 1 in 5 payments now done digitally.

• BSP says 1 in 5 payments now digital; InstaPay overtakes ATM withdrawals in 2020
• Digital banks to help drive economic recovery, says BSP
• Digital bank GOTyme eyes mid-2022 launch: Lance Gokongwei

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