UNO Digital Bank: Pioneering Financial Products for the Unbanked and Underbanked Qorus-Infosys Finacle Banking Innovation Awards 2024

Concept and Objectives: UNO Digital Bank aims to bridge the gap in financial services by offering innovative products tailored to the needs of unbanked and underbanked populations. The bank's core offerings, #UNOReady, #UNOboost, and #UNOearn, are designed to provide accessible high-yield savings accounts, flexible deposit options, and affordable credit facilities. By leveraging advanced technologies and strategic partnerships, UNO Digital Bank seeks to empower individuals and small businesses to manage their finances effectively and securely.

Through UNO’s unique integration with the premier e-wallet platform in the Philippines, it has seamlessly integrated banking services directly into the platform, allowing users to open accounts swiftly in just one minute. This achievement marks a significant leap in efficient e-KYC processes in the Philippines, underscoring UNO’s commitment to serving unbanked and underbanked, digital savvy populations.

In a country where a significant portion of the population lacks access to traditional banking services, UNO stands out by filling this crucial gap– 32% of UNO’s customers are entirely new to banking. Moreover, UNO continues to lead through innovation as the first and only digital bank to offer comprehensive but affordable insurance products within its app, in collaboration with the leading insurance provider in the country. This initiative not only grants unbanked and underbanked customers access to a broad range of insurance solutions but also seamlessly integrates these offerings with UNO’s game-changing array of products, enhancing overall financial security.

Another effort that UNO has pushed to connect the unbanked and underbanked populations to innovative financial products and services is its partnership with a major bills payment company. Through this integration, customers are no longer required to go through the hassle of physically going to payment centers and instead, pay within a touch of a button through the app.

Since UNO has tailored its services to the digital-savvy masses, the app is designed to make the customers’ financial journey accessible anywhere and to anyone in the country.

Reasons Behind: The motivation behind UNO Digital Bank’s core offerings is to address the significant barriers that prevent many Filipinos from accessing formal financial services. High costs, stringent documentation requirements, and limited access to traditional banking are major obstacles for unbanked and underbanked populations. By providing tailored financial products, UNO Digital Bank aims to foster financial inclusion, promote economic empowerment, and improve the overall financial well-being of its customers.

State of Competition: The banking sector in the Philippines is dominated by traditional banks, digital-only banks, and fintech companies. Traditional banks often overlook the needs of unbanked and underbanked populations due to their conventional business models and high operational costs. Digital banks and fintech companies are emerging as competitors, but many still struggle to offer comprehensive solutions for underserved communities. The Bangko Sentral ng Pilipinas (BSP) reports that as of 2021, 56 percent of Filipinos had bank accounts, a significant increase from 23 percent in 2017. Despite this progress, 34.3 million adults remain unbanked. BSP aims to achieve 70 percent financial inclusion by 2024, a challenging goal. However, with initiatives like UNO Digital Bank, which targets a substantial unbanked population, this ambition may become achievable. UNO Digital Bank differentiates itself by focusing on financial inclusion and leveraging strategic partnerships to offer innovative products that cater specifically to these populations. UNO’s partnerships give access to an untapped segment, allowing them to offer essential financial products to new customers.

Departments Involved:

UNO Digital Bank’s project involves collaboration across multiple departments, including: Product Development: Responsible for designing and refining financial products to meet the needs of unbanked and underbanked populations. Technology and IT: Develops and maintains the digital platform, ensuring security, scalability, and efficiency. Partnerships and Alliances: Manages relationships with strategic partners to integrate and expand banking services. Marketing and Customer Engagement: Promotes the bank’s offerings and enhances customer interactions through targeted campaigns and user-friendly interfaces. Operations: Ensures smooth implementation and management of the bank’s services, focusing on operational efficiency and customer satisfaction.

Main Results So Far: UNO Digital Bank has achieved significant milestones with its core offerings: Customer Growth: Acquired 1.5 million customers within 20 months, with more than USD 100 million in deposits, reflecting rapid adoption and trust in the bank’s innovative products. This immense growth solidifies UNO Digital Bank's position as a leader among standalone banks globally. Loans: More than 100K loans were handed out in the first year alone, demonstrating strong customer engagement and confidence in the bank’s offerings. Insurance: The only digital bank to introduce in-app insurance products, providing the unbanked population access to cutting-edge key insurance products that further financial security and protection. Financial Inclusion: First-time bank users comprise approximately 32% of new accounts, showcasing the bank’s impact on financial inclusion. Recognition and Awards: Ranked 6th in Forbes' list of Best Banks in the Philippines and CNBC’s list of banks preferred by customers in 2024. Received the Open Banking Initiative of the Year at the Asia Banking and Finance Awards 2023, and recognized as the Digital Banker of the Year in Asia-Pacific at the World Digital Bank Awards 2023. Ranks 2nd among all digital banks in the app store with a rating of 4.5, and on pace to surpass the top seed at 4.6 before year-end.