Union Bank of the Philippines (UnionBank) and the ATRAM Group (ATRAM) have officially sealed their strategic partnership following the Bangko Sentral ng Pilipinas’ (BSP) green light in April.
The landmark agreement, initially announced in November 2024, sees UnionBank acquiring a significant 27.5% ownership stake in ATR Asset Management, Inc. (AAMI). Simultaneously, AAMI will take full ownership of UnionBank’s trust subsidiary, UnionBank Investment Management and Trust Corporation (UBIMTC).
ATRAM and UnionBank formalized their partnership with a signing ceremony led by (from left): Michael Ferrer, ATRAM Group CEO; Manuel Tordesillas, Chairman of the Board of Directors of ATRAM Trust Corporation and ATR Asset Management, Inc.; Ana Maria A. Delgado, President and CEO of UnionBank of the Philippines; and Manuel R. Lozano, CFO of UnionBank of the Philippines
The culmination of these transactions will be the highly anticipated merger of AAMI’s trust arm, ATRAM Trust Corp (ATC), and UBIMTC. This union will give birth to a formidable entity, instantly becoming the fourth-largest private asset management firm in the Philippines.
Top executives from both institutions have expressed immense optimism about the collaboration.
“This milestone marks a pivotal step for UnionBank as we combine our digital leadership with ATRAM’s investment expertise to create smarter, more accessible wealth solutions for Filipinos. Together, we’re redefining asset management through digital-first innovation,” said Ana Maria Aboitiz Delgado, UnionBank President and CEO.
Echoing this sentiment, ATRAM Group CEO Michael V. Ferrer stated, “With UnionBank, we’re powering next-generation world-class digital investment solutions that grow client wealth. By leveraging digital innovations with our investment expertise, we are set to drive long-term financial growth and raise industry standards.”
The partnership ushers in a bold new era of asset and wealth management in the Philippines — one that is defined by innovation, digital leadership, and true client empowerment. It’s not just about size; it signals a bold new era for asset and wealth management in the Philippines.
By integrating UnionBank’s renowned digital prowess and extensive reach with ATRAM’s deep-seated investment acumen, the partnership aims to democratize investing and offer more personalized and accessible financial solutions tailored to Filipinos’ long-term goals.
Together, ATRAM and UnionBank are combining their strengths to democratize investing, pioneer a more accessible and inclusive future, and expand financial possibilities for every Filipino.
How UnionBank-ATRAM partnership can reshape PH’s financial landscape
The coming together of UnionBank and ATRAM extends beyond the creation of a major player in asset management. This development carries significant implications for the broader Philippine financial industry, particularly as the nation inches closer towards greater financial inclusion and embraces digital transformation.
The partnership directly addresses a critical challenge highlighted by recent data from Pearl Pay: a substantial portion of the Philippine population remains unbanked or underbanked. Despite a high mobile penetration rate –- with 152.4 million mobile connections reported in 2021 -– only 42.1% of internet users in the Philippines actively use banking and financial services apps.
This leaves a significant 63.86 million Filipinos with limited access to formal financial services.
The BSP has actively been pushing for a more digitally inclusive financial ecosystem through its Digital Transformation Roadmap. The goal is ambitious: to digitize 50% of retail payment transactions and bring 70% of Filipinos into the formal financial system by providing them with payment or transaction accounts.
Merger to drive digital investment adoption, enhance accessibility
The UnionBank-ATRAM synergy aligns perfectly with this national agenda. By leveraging UnionBank’s established digital infrastructure and ATRAM’s investment products, the merged entity is poised to:
- Accelerate digital adoption in investments: The focus on “digital-first innovation” can encourage more Filipinos, particularly the younger and tech-savvy demographic, to explore investment opportunities through user-friendly mobile platforms. This can significantly increase the adoption of financial services apps beyond basic banking transactions.
- Enhance accessibility and convenience: Mobile-first investment solutions can break down geographical barriers and time constraints, making wealth management more accessible to individuals across the archipelago. Filipinos can manage their investments anytime, anywhere, using their mobile devices.
- Drive product innovation: The combination of digital capabilities and investment expertise can lead to the development of innovative and tailored investment products that cater to the diverse needs and risk appetites of the Filipino population.
- Increase competition and raise industry standards: The emergence of a strong, digitally-driven asset manager like the merged UnionBank-ATRAM entity can spur other financial institutions to accelerate their own digital transformation efforts and enhance their wealth management offerings to remain competitive.
- Support the BSP’s financial inclusion goals: By making investment more accessible and engaging through digital channels, this partnership can contribute significantly to onboarding more Filipinos into the formal financial system, thereby supporting the BSP’s overarching goals.
The pandemic has already demonstrated the power of digital solutions in sustaining economic activity and ensuring the continuity of financial services. The strategic alliance between UnionBank and ATRAM represents a significant step forward in harnessing this digital momentum to democratize wealth and build a more financially inclusive future for the Philippines.
As more institutions embrace a mobile-first approach, the nation can unlock the vast potential of its digitally connected population and pave the way for greater financial empowerment for every Filipino.
By combining UnionBank’s cutting-edge digital capabilities and broad reach with ATRAM’s trusted expertise in managing investments, wealth management will be made much more personalized, accessible, and aligned with a client’s long-term financial goals.