The UnionBank of Philippines (UBS) Uses Blockchain to Lower Business Costs
The UnionBank Of Philippines (UBS) Set To Adopt blockchain In Daily Activities.
The overall cryptocurrency market has been on a downtrend in the last week as the correction happens. However, on the blockchain front, the field has continued to see an increase in the overall adoption amongst institutional investors and corporations. The UnionBank of the Philippines is the latest bank to announce their interest in adopting blockchain to reduce the overall operational costs associated with banking. The increasing number of Filipinos who remain unbanked in the population will be a huge market for the fast processes and cheap nature of blockchain.
Edwin. R. Bautista, the CEO and President of UnionBank recently held an interview with Philippine Investment Forum that confirmed the bank is aiming to introduce blockchain technology to its operations. The banks will integrate the technology to its day to day activities as it gains additional knowledge on the application of the blockchain.
The CEO later spoke to reports saying UnionBank has already rolled out plans to the various sections of the bank to reduce the cost and “blockchainize” the institution.
The UnionBank of Philippines is a subsidiary of the UnionBank Inc., a top bank in the US with over $5.6 Billion USD in revenue and assets over 140 billion USD. The continued interest of UnionBank in integrating blockchain will see over 700 internal processes such as fund transfer, opening an account, settlement of transactions or clearing a cheque shifted to the block chains set. The bank is yet to comment on the blockchain they are going to use. We will keep you updated.
According to an interview with Justo Ortiz, Union’s Bank current board chairman; the financial institution is not taking chances with opportunities in this Fin-tech era. Mr. Ortiz said that in future the bank aims to venture into blockchain services hence doubling up as a technology company.
Ortiz noted the importance of incorporating blockchain as a solution to financial access. During the interview, he added that the inclusion of the 75% unbanked Filipinos were among the pioneer reasons for integrating the blockchain network within Union Banks’ systems!
The Union Bank of Philippines optimism within the cost saving involved with the blockchain technology has driven deployment of resources for further research. Ortiz said that the bank is looking into newer technologies to tap into the market; these so far are mainly in robotic process optimization, Artificial Intelligence and data analysis.
Union Bank has been strategically active in 2018 hence the good prospects for both blockchain technology and the bank. Visa, the card services giant Union Bank entered into a partnership with is expected to facilitate the bank’s expansion into the SME sector.