Huawei: Powering UnionDigital Bank’s Cloud Transition

Leading Filipino financial services firm UnionDigital Bank has transitioned its core banking system to the cloud in just 35 days. 

This was made possible thanks to its collaboration with Huawei and Chinese fintech firm Sunline and marks a significant move in the bank’s mission to provide accessible financial services to underserved communities. 

UnionDigital Bank: Meeting the Philippines’ underserved

As one of the first institutions to receive a digital banking licence in the Philippines, UnionDigital Bank has made it its mission to tap into a market of 70 to 80 million people earning less than $200 per month locally, delivering financial services to all that need it.

Ron Puno, UnionDigital's Chief Technology and Transformation Officer, says: “One of the things that they really need is financial assistance. How do we extend loans out to them in a faraway area very quickly? The only way to do that, we think, is through digital means.”

But how will UnionDigital Bank deliver these digital services? Its strategy revolves around an ecosystem-based approach, leveraging digital and intelligent technologies to offer accessible and secure financial products. 

To achieve this, UnionDigital needed to scale up its core system, including the deployment of a loan service platform with microlending capabilities.

Huawei: Cloud infrastructure provider

Huawei, UnionDigital's existing partner, was selected to provide the cloud infrastructure for this ambitious project. Huawei, in turn, partnered with Sunline, a leading Chinese fintech firm with a growing international presence. 

This collaboration, part of Huawei's Financial Partner Go Global Program (FPGGP), brought together complementary strengths to deliver the project within the aggressive 35-day timeline.

The rapid deployment was crucial for UnionDigital to comply with central bank regulatory standards while ensuring the ability to provide scenario-specific financial services for mid- and low-income customers. The system also needed to guarantee stability during user and transaction surges.

Song Yu, Senior Deputy Director of Sunline's delivery centre, adds: “All of our components can be supported by Huawei Cloud. No matter what technical problems we face, we can find a solution on the Huawei side. Not only that, our products also work well with Huawei Cloud.”

The successful implementation has already yielded impressive results. UnionDigital is processing a large number of loan applications daily through the new system, helping the bank secure the largest market share in the Philippines' digital banking sector.

Ron Puno reflects on the potential impact: “Once people start to tell other people that you can rely on this, then more and more people will use it. It will change how banking is done in the Philippines… [but] we don't know when that moment will happen. We don't know if it will be just a few people over time. We don't know if it will be everyone overnight.”

The power of digital banking in emerging markets

This project is particularly noteworthy in the context of emerging markets, where traditional banking infrastructure often fails to reach large segments of the population.

The speed at which UnionDigital Bank has managed to achieve its transformation further highlights the rapidity at which cloud-based solutions can make lasting change and champion financial inclusion. 

“In the past, it would take months, if not years, to deploy a core banking system,” continues Ron. “Now, we've done it in just over a month. This agility allows us to respond quickly to market needs and regulatory changes.”

The success of this project could serve as a blueprint for other financial institutions in emerging markets. 

As Song Yu explains: “We believe this model of collaboration between local banks, global tech giants, and specialised fintech firms could be replicated in other countries facing similar challenges with financial inclusion.”

The implications of this project extend beyond just providing loans to the underserved. By giving millions of Filipinos access to formal financial services, UnionDigital is potentially unlocking economic opportunities that were previously out of reach. From small business loans to savings accounts, these services could help drive economic growth at both individual and national levels.

Ron concludes: “We're not just building a bank; we're building a platform for financial empowerment. Every loan we process, every account we open, is a step towards a more inclusive financial future for the Philippines.”

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