The adoption of the blockchain in the internal processes of UnionBank led to lower operating costs.
The decision to adopt blockchain in its internal processes has allowed UnionBank of the Philippines (UBP) to cut operating costs while learning more about the application of technology.
Speaking to journalists at the recent Philippine Investment Forum, UnionBank president and CEO Edwin R. Bautista said the bank has implemented a series of internal blockchain applications for its day-to-day operations.
UnionBank is one of the most active banks in the country to implement blockchain. Bautista said that the bank plans to "block" more internal processes to further reduce operating costs.
UBP has identified that many of its over 700 internal processes are ready to migrate into blockchain such as transferring funds, opening an account, controlling compensation, and others.
In a previous interview with Cryptovest the president of the board of UBP Justo Ortiz said that the bank is turning into both a bank and a technology company while pushing for adoption of blockchain technology not
In the same interview, Ortiz said that one of the reasons why the bank is using blockchain is to promote financial inclusion and to allow more than 75% of Filipino adults who do not own a bank account to gain access to financial services.
"This is the main reason we do blockchain," said Ortiz when asked how financial institutions will solve the problem of unallocated numbers of Filipinos. He added: "We are doing AI. Now we are performing the optimization of the robotic processes and we are preparing the analysis of the data, so this is the trace of a kind of technology we have to achieve".
At the beginning of this year UnionBank signed an agreement with the giant Visa for credit card services to establish a cross-border banking-bank payment system with the aim of serving small and medium-sized enterprises (SMEs).