UBX, the financial technology and open finance arm of Union Bank of the Philippines (UnionBank), partnered with Japan’s SBI Holdings Inc. to customize products and services of financial firms in the country.
UBX president John Januszczak said SBI will be sharing knowledge and technology about digital banking, especially the use of blockchain and digital assets, along with investments, wealth management, insurance and payments to expand operations of other businesses.
“All of which will accelerate our growth. Together we will create solutions that are more integrated, more efficient and ultimately more impactful,” he said last Friday in a media briefing in Bonifacio Global City, Taguig.
“Opening up their businesses to other businesses and consumers through our platform will extend their customer reach,” Januszczak added.
Under their business partnership, Januszczak said SBI committed to invest some funds in UBX through a 16.7 percent stake, apart from providing the latter insights and enriching its capabilities for digital banking and related services.
UBX started operating in 2019 as a financial technology provider. Januszczak said UBX now serves around 200 financial firms and over 250,000 non-financial entities of all business sizes.
They include government institutions, large corporations and micro, small and medium enterprises. Some of them are accessible through the UnionBank Online Marketplace.
Meanwhile, Januszczak said SBI has invested in 15,000 startups and accumulated a market capitalization that is six times bigger than UnionBank.
Betting for future
“We will make a bet into the future. The UnionBank CEO before me told me that we should be the first to adopt blockchain technology because the earlier you learn, the cheaper your tuition fee is going to be,” UnionBank president and chief executive officer Edwin Bautista said.
“Thus, we were first in the Philippines to deploy blockchain technology for clearing systems of rural banks,” he added.
Januszczak said developments in digital banking products and services have been driven by blockchain, a safe data storage tool in computers that helps businesses speed up transactions and analyze huge volumes of information.