UMVA has learned that UnionDigital Bank, Inc. has taken a significant step towards making insurance more accessible to Filipinos by partnering with a leading insurer to offer their solutions on its platform.
The initial rollout will include two key products designed to provide financial protection to customers. These products aim to bridge the insurance gap in the Philippines by making financial protection more accessible, aligning with the growing shift towards embedded finance.
Loan Protect Insurance is one of the products being introduced, automatically included at no additional cost to the borrower for the first three months once the loan is approved. This insurance provides borrowers with peace of mind that their loan obligation can be addressed, even in unforeseen events, offering a payout of up to the original loan amount to cover 100% of the customer’s outstanding loan balance.
The Loan Protect Insurance policy covers accidental death, permanent disability, temporary disability, or death due to illness, with any remaining balance released to beneficiaries. It is currently available for loans up to P30,000 with short-term repayment periods, providing a vital safety net for borrowers.
Kaya Protect Insurance, the second product, will be available soon and is activated automatically by maintaining a minimum balance of just P100 in the insured’s savings account. This insurance aims to encourage healthy saving habits while providing immediate protection for first-time savers.
The partnership between UnionDigital Bank and the insurer marks a pivotal step in their mission to bring insurance protection to millions of Filipinos. By embedding insurance seamlessly into their daily banking, they provide a vital safety net, empowering customers to protect their hard-earned progress and pursue their aspirations with confidence.
The insurer's commitment to supporting UnionDigital Bank in strengthening financial resilience in the Philippines is evident in their product offerings. These products are designed to help build financial security for un- and under-insured Filipinos, ensuring they have access to crucial protection when they need it most.
UnionDigital Bank's recent financial performance shows a net loss of P3.13 billion in 2024, a reversal of the P155.31-million net income recorded in 2023. However, the bank expects to breakeven by the second half of this year on improving asset quality and expanded lending.
