UnionBank optimistic on the future of Philippines banking

MANILA, Philippines — Union Bank of the Philippines is betting on a resilient financial system, a digital-first strategy and a booming consumer market to drive the next chapter of banking in the country.

In a recent panel discussion hosted by SGV & Co., UnionBank president and CEO Ana Maria Aboitiz-Delgado shared a confident perspective on how the bank and the broader banking sector can thrive in today’s complex global environment.

“I’m actually very optimistic,” Delgado said. “The world is moving fast, and there’s a lot of uncertainty, but when I look at the Philippine banking sector, I see strength.”

“We have a resilient, well-regulated system. Our central bank has done a fantastic job laying down a strong foundation,” she said.

The discussion came on the heels of renewed global tension, with US President Donald Trump’s reciprocal tariffs stirring fears of trade wars and rising geopolitical risk.

Despite these risks, UnionBank sees opportunities opening up for consumer lending and small business growth with interest rates softening and banks’ reserve requirements easing.

“As borrowing becomes more accessible, we’re going to see momentum shift toward a more consumer-led economy,” Delgado said.

“At the same time, we expect the government’s push to attract investments to create fertile ground for new businesses,” she added.

The Aboitiz-led bank has aligned its strategy accordingly, with a deliberate pivot toward consumer lending. Today, 61 percent of the bank’s loan portfolio is consumer-based and the bank plans to increase that even further.

“We believe in the strength of the Filipino consumer,” Delgado said.

“There’s a massive wave of young Filipinos entering the workforce. They’re digital natives. They’re ambitious. We want to be the bank that grows with them,” she said.

As the global landscape grows more complex, banks are also under pressure to anticipate and manage risk, from interest rate volatility to geopolitical shocks.

According to Delgado, scenario planning and stress testing are already embedded in UnionBank’s risk framework.

“We run stress tests annually. We play out different geopolitical scenarios to see how they would impact our balance sheet,” she said.

“If interest rates shift, what does that mean for our portfolio? If global tensions slow down growth, what does that do to the average consumer’s income or creditworthiness?”

Delgado also spoke about UnionBank’s ongoing role as a leader in digital transformation, noting that the bank began this journey well before the pandemic and the current rise of artificial intelligence.

“Digital disruption isn’t new to us,” she said. “We started our digital transformation journey over ten years ago in response to early signs of change in the industry. What we’re doing now is simply continuing that mission: to lead through innovation and deliver world-class digital experiences for our customers,” she said.

But while technology has been a central tool, Delgado said that UnionBank’s transformation began not with gadgets or apps, but with people.

“It doesn’t start with tech,” she said. “It starts with your business and your customers. You have to deeply understand the needs of the people you’re serving, and then design solutions around that. Technology just helps you get there faster,” she added.

While many institutions took a conservative stance during the pandemic, UnionBank doubled down on transformation. She said the bank made significant investments during COVID-19. That decision also stemmed from the rise of fintech disruptors, who brought new experiences and expectations to the Philippine market.

“Transformation doesn’t bring down costs right away. It takes time,” Delgado said. “As a mid-sized bank, we saw this as an opportunity to compete not just on size, but on agility. We leaned into our strengths — speed, creativity and digital know-how.”

Looking ahead, UnionBank plans to take customer experience to the next level by investing heavily in artificial intelligence.

“We want to deliver highly personalized experiences at scale,” Delgado said. “That’s the next frontier in digital banking. We want our services to feel intuitive, intelligent and individually relevant to every customer.”

As it navigates a rapidly evolving global and local landscape, UnionBank remains focused on staying ahead of disruption by investing in people, technology and risk resilience.