Huawei and Sunline helped UnionDigital Bank launch a cloud-based core banking system in just 35 days. This platform gives millions of unbanked Filipinos access to financial services. It is an important step toward financial inclusion.
Not having a bank account does not mean someone is a bad credit risk. Many people in the Philippines do not have access to financial services. They need bank loans and can repay them. However, they do not have bank accounts, and many banks do not serve customers who need microlending.
For many families, borrowing money is the first step toward prosperity. It allows them to buy a house or start a business. Unbanked Filipinos represent a large untapped market. UnionDigital Bank wants to serve this group and help Filipino families become financially strong.
In August 2023, Huawei partnered with Sunline, a Chinese financial technology company, to help UnionDigital Bank build a new platform for loans. They finished the project in just 35 days. The new platform allows millions of unbanked Filipinos to access financial services.
Ron Puno, UnionDigital’s Chief Technology and Transformation Officer, said that about 70 to 80 million people in the Philippines earn less than 10,000 pesos or 200 dollars a month. Many of them still do not have bank accounts. He said they need financial assistance and that digital means are the best way to extend loans to them quickly in remote areas.
UnionDigital was one of the first to receive a digital banking license in the Philippines. The bank uses an ecosystem-based strategy to provide easy-to-use and secure financial products and services. They aim to help underserved individuals, small businesses, and communities. UnionDigital wants to promote inclusive development by offering services based on digital technologies.
UnionDigital needed to improve its core system to achieve this. They needed a loan service platform with microlending capabilities. These upgrades had to follow the central bank’s rules and allow UnionDigital to offer financial services for mid- and low-income customers. They also needed to ensure stability during user and transaction surges.
UnionDigital chose Huawei for the cloud infrastructure of this project. Huawei worked with Sunline, a leading service provider, to deploy the new system. Sunline is the first major Chinese fintech firm to expand overseas. They aim to become a global provider of digital finance solutions and services. They joined Huawei’s Financial Partner Go Global Program Acceleration Program.
UnionDigital, Huawei, and Sunline agreed on a short timeline. They launched the core system just 35 days after starting. Rapid deployment was necessary to follow the central bank’s rules. This was the first time Huawei moved a core banking system to the cloud.
Song Yu, Senior Deputy Director of Sunline’s delivery center, said that two things stood out in his experience with Huawei. He said that all components can be supported by Huawei Cloud and that their products work well with Huawei Cloud. Their joint solution integrates the strengths of both companies.
A project of this scale usually takes three to six months. Given the 35-day deadline, Huawei and Sunline brought in senior experts to make it happen. UnionDigital was impressed, and the project helped them gain new customers and secure the largest market share in the Philippines.
Ron Puno predicts that more people will use the service once they hear it is reliable. He believes it will change banking in the Philippines, but it is uncertain when this will happen. It could be gradual or occur overnight.
Many loan applications are now processed daily through this system. This success helps UnionDigital rank among the top FinTech companies in the Philippines. Millions of Filipinos now have new financial opportunities.
Huawei will continue working with Sunline and other partners to help more banking customers worldwide. Through joint innovation, Huawei plans to help financial institutions upgrade and go digital. They aim to provide better, efficient, secure, and innovative products, solutions, and services.
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