VALUE CHAIN ANALYSIS OF UNION BANK

SUPPORT ACTIVITIES
Firm Infrastructure Planning, Financial and Legal management

Risk Established independent risk management units Margin

al
Human Resources Recruitment, Training, and Research and Development
Developme
nt
Inbound Outbound Marketing & Products and
Operations
Logistics Logistics Sales Services
E-payment Statement of
Online channels Cash management Margin
24/7 (Facebook, e-mail, services, UnionBank
Accounts Twitter, Instagram,
E-clearances transactions Online, Loan
LinkedIn, products, Private
Electronic
Glassdoor, banking, Debit and
Statement of corporate pages)
Accounts (e-SOAs) Credit cards, and
Customer service Deposit products
hotline

PRIMARY ACTIVITIES
SUPPORT ACTIVITIES
Firm Infrastructure
Union Bank operates through the following segments: Consumer Banking, Corporate
and Commercial Banking, Treasury, and Headquarters. The Headquarters segment consists
of corporate management, support, and administrative units. Corporate management
oversees the planning and financial matters while legal issues are handled by support units.
Risk Management
For the day-to-day management of risks, UnionBank has established independent
risk management units that objectively review and ensure compliance to the risk parameters
set by the Board. They are responsible for the monitoring and reporting of risks to senior
management and the various committees. UnionBank addresses sustainability risks by
pursuing digital transformation and investing in relevant social and environmental programs,
which benefit its stakeholders.
Technological Development
While many banks went for size and market share via large balance sheets,
UnionBank has put technology at the heart of its business. It aims to align their digital
transformation strategy with sustainable value creation. For customers who cannot do away
with actual banking transactions, UBP launched bank on wheels, a mobile ATM that goes to
areas with high demand. This decreases queues in the branches and reinforces social
distancing. UnionBank also developed the Bonds PH mobile app that leverages blockchain
and enables consumers to buy retail treasury bonds (RTBs) issued by the Philippines
 Bureau of the Treasury (BTr). It also launched SME banking platform, a mobile application
that allows SMEs to open online stores and track inventory, alongside the basic banking
transactions it usually offers.
Human Resources Management
UnionBank has a Human Capital Development Program to identify skill gaps,
measure human capital management, and develop systems to share knowledge across the
company, in a manner that is timely to keep up with the fast changes in the industry. When
the pandemic resulted to lockdowns, UnionBank relied heavily on conducting virtual trainings
through UnionBank University portal, eliminating the use of physical classrooms and
allowing for an on-demand, paced learning approach. UBP continues to expand its network
to find the right talents and build their talent pool, as well as investing in certifications for
deep skills. They are also focused on conducting in-depth research and development to
provide leadership and direction for leading-edge capabilities.
PRIMARY ACTIVITIES
Inbound Logistics
Opening an account in UnionBank can be done by either filling up an application form
and submitting some requirements in one of their branches or opening a UnionBank savings
account online, all in the comforts and convenience of their home. With a UnionBank
personal savings account, zero maintaining balance and zero initial deposit are required.
Operations
UnionBank Online is open 24 hours a day, 7 days a week. It also has multiple
physical channels available for transaction and information access: 388 branches
nationwide, and 485 ATMs (as of December 31, 2020). Branches are usually open from 9:00
AM to 3:00 PM to serve banking needs.
Outbound Logistics
Customers can avail a copy of their Statement of Account (SOA) by visiting any
branch near them or they can contact UBP either by phone or e-mail. For convenience, they
can download UnionBank Online and sign up with their account to view their transactions
anytime, anywhere. In line with their digital transformation, e-SOA is also provided by UBP. It
is a free service where users will get their credit card monthly statement of account in
password-protected pdf form via registered email address instead of paper-based
statements.
Marketing and Sales
UnionBank operates a 24-hour ISO-certified call center that handles customer
relationship and product queries. The Bank also maintains a 24/7 customer service chatbot
dubbed “Rafa,” accessible through Facebook messenger. UnionBank strives to carefully
assess and review all marketing campaigns, materials, and digital platforms (including the
mobile app and website).
Products and Services
UBP offers a broad range of products and services, which include deposit and
related services; corporate and middle market lending; consumer finance loans such as
mortgage, auto loans and credit card; investment, treasury and capital market; trust and fund
management; wealth management; remittance; cash management and electronic banking;
and bancassurance. They also launched UnionBank Online through which users can easily
transfer funds and pay bills, including sending money to partner remittance centers: Palawan
Express, Cebuana Lhuillier, LBC and PeraHub. Under cash management services, Union
Bank also introduced “The Portal by UnionBank”, an online cash management platform for
corporate and business users to facilitate all their banking activities: initiate fund transfers,
pay bills, monitor balances, approve transactions with a single sign-on and many more.