According to data from the Bangko Sentral ng Pilipinas (BSP), total deposits across the country’s six licensed digital banks reached over P100 billion as of March 2025, marking a 33% increase year-on-year. Digital payments accounted for 57% of retail transactions, while consumer lending grew 18% in the first quarter.

Despite this momentum, nearly seven in ten Filipinos still rely on cash and e-wallets for daily spending, highlighting the gap between access and adoption. The World Bank’s 2024 Financial Inclusion Survey revealed that only 50.2% of Filipino adults hold formal financial accounts—and even fewer use them actively.

UNO Digital Bank, one of the six BSP-licensed digital banks, has made bridging this gap central to its mission. Rather than focusing on product volume or marketing, the bank emphasizes responsible lending, financial literacy, and AI-driven risk assessment to reach underserved and first-time borrowers.

“Half the population is still unbanked, but the more important issue is that many of those who are banked are underserved,” said Manish Bhai, founder, president, and CEO of UNO Digital Bank. “We want to serve them better by using data and technology responsibly.”

Bhai, a financial industry veteran, envisioned UNO not just as an online bank, but as a partner and life guide, helping Filipinos by making banking “simple, better, and more accessible.”

Moving away from informal credit

Founded in 2022, UNO currently serves around 4 million Filipinos, 15% of whom say UNO is their first-ever bank. Bhai added that one in five loan customers identified UNO as the first institution they’ve ever borrowed from. To stay competitive and customer-friendly, the bank maintains interest rates between 1.5% and 2.5%.

“Financial inclusion isn’t just about access; it’s about protection,” Bhai said. “Trust means knowing your money is safe, that rates are fair, and that you have someone to turn to when you need help.”

To strengthen that trust, UNO offers free insurance bundled with deposit accounts meeting a minimum balance requirement, a program that has already covered over 50,000 Filipinos.

Data and AI as enablers

UNO Digital Bank leverages artificial intelligence and behavioral analytics to assess creditworthiness among customers with limited formal credit histories—a major hurdle in emerging markets. By analyzing alternative data points such as payment patterns and transaction behavior, UNO extends secure and inclusive lending to those traditionally excluded from formal finance.

“We’re already using AI in credit scoring and onboarding,” Bhai explained. “Our chatbot, powered by large language models, was the first in the country to enable natural language interaction. Soon, customers will be able to check balances and statements directly through it.”

These innovations allow UNO to offer more personalized and transparent financial products, with Bhai noting that AI will be key to scaling inclusion sustainably.

Trust as the foundation

While digital banking remains a small share of the financial system, the BSP has underscored its role as a key driver of inclusion. The central bank aims to have 70% of Filipino adults financially included by 2028, a goal that hinges not only on technology but also on trust and usability.

For inclusion to take root, Bhai emphasized, banking must evolve from transactional to relational—a philosophy central to UNO’s model.

“As the market becomes crowded, it is all about trust,” he said. “Trust means that we are always reachable. Trust means that your money is safe. Trust means that there is comfort that UNO charges, but it is not charging exorbitant rates. It is a reasonable charge. Trust is that it is able to offer all the services which a person requires in this crowded world.”