UnionBank of the Philippines (UBP) is now both a technology company and a banking institution, according to Justo Ortiz, UBP chairman of the board in an interview with the Daily Tribune.

The shift in UBP focus explains why the bank is actively pursuing blockchain technology as “it wants to get ahead of the game” to meet the evolving landscape in the financial institution industry.

“The digital transformation of UnionBank always starts with our values and our purpose.

Our values are integrity, trust and people,” Ortiz said. “We believe that people should belong in a community. You are not a person unless you belong to one.”

He explained that the bank’s digital transformation is centered on reaching out to more people, particularly those under served and not focused on technology. Ortiz said technology can be learned and it is also very useful in solving problem and “fixing what needs to be fixed.”

“I don’t worry about obstacles that technology might present, but I look at the opportunities. The issue is people, your own people. And so this is culture building.”

Because people is central in UnionBank’s core values and shift in business model, the bank has embraced the concept of Ubuntu, which means community in South Africa, because at “UnionBank, we are building a community” to elevate lives and effect inclusive growth, he added.

It was also the concept of Ubuntu which started the bank to initiate its digital transformation. Ortiz said the bank has had a lot of success in its businesses, particularly cash and land management. But it all started when former GSIS (Government Service Insurance System) general manager and president Winston Garcia asked UBP to integrate their services into pension fund’s e-card.

“We came in with our proposal as well as all the other banks. But then Winston told us, ‘You know what, you’re the only one who got it. You understood what we wanted.’ And that was the genesis of our Ubuntu philosophy. That is how it brought us to our digital transformation,” he said.

He stressed the bank’s purpose is to elevate lives and fulfilling dreams, which means serving the individual rather than running a business. This principle also fits their third purpose, which is to enable communities through smart banking in the spirit of Ubuntu.

Trailblazing on the nascent blockchain technology and to cement its leadership in fintech, UnionBank unveiled in May Project i2i (Project island-to-island) Ethereum-based blockchain initiative for real-time retail payments, involving five rural banks as pilot.

The project was launched Davao City with Cantilan Bank, PR Savings Bank, City Savings Bank, FairBank and Progressive Bank. It aims to bring millions of unbanked Filipinos to the financial system by connecting rural banks to the country’s main financial network. It runs on ConsenSys’ Kaleido platform designed to speed-up and simplifies the process of using blockchain technology.

With UnionBank, rural banks now have access to the main banking network, which allows them to perform important banking functions that universal banks can also do. Looking further ahead, Project i2i will cater to other sectors including cooperatives and sari-sari stores. Overall, this highlights the power of smart banking and digital solutions to elevate lives and fulfill dreams through financial inclusion, UnionBank’s brand promise.