Why a consumer bank launched this initiative in the fintech industry

Collaboration is key when it comes to success.

This is what a consumer bank believes when it launched its Open the Finance Innovation Hub where different organizations can work together and create solutions to drive progress in the fintech industry (financial technology).

The Fintech Business Group in UnionBank On 13 April, the innovation launched which will provide an open digital ecosystem for co-creation in the country.

The consumer bank said its digital ecosystem breaks down silos and encourages trust and collaboration.

In business, silos are defined as a way of thinking when a certain department or sector does not want to share information with others in the same company.

Unionbank said the Open Finance Innovation Hub seeks to provide a platform where different groups can work together, learn from each other and create solutions to drive transformation in fintech.

It recently launched a 12-week program equipping start-ups to adopt lean digital banking and open finance.

The 12-week program sought to refine start-ups’ business models, scale their operations and secure seed round investments from venture capitalists and investors.

UnionBank said it is the first bank-led open innovation platform designed to help the growth of start-ups through the early to mid-stages of their journey – from scaling to funding.

Meanwhile, collaborators from different industries can publish and consume problem statements, data and models in an open source platform after the 12-week program.

Why collaboration is important

According to the head of the UnionBank Fintech Business Group Erika Dizon-Gotrust is essential to building a collaborative culture between units.

“Overcoming the challenges of open innovation requires a willingness to foster a culture of collaboration, to overcome the silo mentality that often inhibits innovation,” she said in a release.

“It requires us to build trust and relationships because it requires trust between partners, which can be built through effective communication, transparency and a mutual understanding of the end goal,” Dizon-Go added.

For HR Manager at UnionBank Michelle Rubioinnovation is in the bank’s “DNA.”

“This is why we created this space – to bring together the enthusiasts and experts from different industries, put our heads and minds together and create ideas and solutions,” she said, referring to the Open Finance Innovation Hub.

“Open innovation is more important now because it’s really needed to drive progress and transformation not only in our business, but society in general,” Rubio added.

“Much bigger bank”

In its annual shareholder meeting on April 28, bank president and CEO Edwin Bautista said the consumer bank is getting bigger and “growing” its customer base.

According to him, the bank’s customer base has doubled to 10 million in three years, more precisely from 2019 to 2022.

It also improved its digital channels and diversified its thrift bank subsidiary.

Also, UnionDigital, the digital banking arm of UnionBank, has booked over P5 billion in loans in five months.

“We are now a much bigger bank,” Bautista said in his presentation.

Meanwhile, those who wish to be part of the bank’s Open Finance Innovation Hub can email [email protected].