As digital banks face rising levels of AI-driven fraud, strengthening identity verification has become critical to protecting customers and maintaining trust. Russell Hernandez, CISO, UnionDigital Bank, tells us how deploying iProov’s biometric liveness technology is helping the bank prevent account takeovers and mule activity while delivering a secure, frictionless experience for underserved communities across the Philippines.
UnionDigital Bank, a pioneering digital bank in the Philippines, has deployed iProov Dynamic and Express Liveness solutions to protect against account takeover and mule activity as part of a strengthened risk-based authentication strategy.
iProov’s solutions now power UnionDigital Bank’s approach to authentication, delivering the flexibility to apply heightened security for high-risk transactions while maintaining a fast and frictionless experience for everyday banking. Risk-based authentication enables the bank to support its mission of delivering a safe and inclusive digital experience for underbanked and underserved communities across the Philippines who depend on mobile devices for essential financial services.
A global surge in sophisticated AI-driven threats has placed the financial services sector on high alert. In the Philippines this has intensified focus on resilience against cyberthreats such as account takeovers, where fraudsters gain illegal access to user accounts and mule activity, which involves using accounts to launder illicit funds. To address these risks, UnionDigital Bank upgraded its previous device-based biometrics technology to align with increasing scrutiny from financial regulators, including the Bangko Sentral ng Pilipinas, on strengthening consumer protection.
We asked Russell Hernandez, CISO, UnionDigital Bank, and Andrew Bud, Founder and CEO, iProov, for more insight.
Russell Hernandez
What impact has the rollout of the iProov solution had on UnionDigital Bank so far?
Since day one, our focus has been clear. Trust drives inclusion, and Filipinos will only embrace digital banking if they feel genuinely safe. With AI-driven fraud growing quickly in the Philippines, older methods like OTPs and passwords are no longer enough to protect customers. Implementing iProov has allowed us to strengthen our defences without adding friction, which is essential for a digital bank that serves a broad and diverse market.
Through iProov’s biometric identity assurance and real-time liveness detection, we now protect the most critical points in the customer journey such as new device registration, password resets and high value transfers. This has helped reduce the risk of account takeovers and money mule activity, two of the most harmful fraud patterns we see in the industry.
Most importantly, the experience remains simple and accessible. Customers only need to look at their camera, and it works even on basic smartphones. This keeps financial protection within reach for every Filipino and reinforces the message at the heart of everything we do to bank safely, confidently and securely, because strong protection should empower, not exclude.
How did you ‘sell’ the benefits of the iProov solution to UnionDigital Bank employees?
Internally, we anchored everything on our mission. Protecting customers is essential to financial inclusion, and if Filipinos do not feel safe, they will not transact digitally. This helped us frame iProov not as another layer of complexity but as a key enabler of trust, growth and responsible banking.
For our product and operations teams, we explained the business impact in very practical terms. Stronger identity assurance means fewer account takeovers, fewer escalations and stronger alignment with BSP Circular 1213, which encourages banks to move beyond weak authentication methods like SMS OTP.
For compliance and leadership, iProov was a proactive investment that strengthens our defences before fraud incidents scale.
We also reinforced the value to the customer experience. iProov’s passive liveness check is far simpler than multiple OTPs or challenge questions. Customers only need to look at their camera and the process works across both high-end and basic smartphones.
The message that resonated across the organisation was clear. We are not adding friction. We are building a safer and more inclusive path so more Filipinos can bank with confidence through UnionDigital Bank.
Where do you see the partnership with iProov taking UnionDigital Bank in the future?
We see iProov as a long-term partner in strengthening the digital trust foundation that supports UnionDigital Bank’s growth. As AI-enabled fraud becomes more sophisticated, the industry is moving away from simple facial matching and toward science-based identity assurance that can withstand deepfakes, replays and injection attacks.
This direction aligns closely with BSP’s push for stronger, real-time authentication standards.
Looking ahead, we plan to expand biometric assurance to more high-risk touchpoints such as new device binding, sensitive profile updates, account recovery flows and larger fund transfers. This strengthens our risk-based authentication strategy by keeping everyday interactions simple while applying stronger controls when the risk is higher.
The partnership also supports our financial inclusion goals. iProov works reliably across a wide range of smartphones, including lower-cost devices used by many first-time digital banking customers. This reflects our commitment to making security both strong and accessible. It aligns well with our Kaya Mo message because we protect our users quietly in the background so they can save, borrow and manage their money with confidence.
As we bring more underserved Filipinos into the financial system, iProov will remain an important part of how we safeguard trust and deliver a secure banking experience for all.
Andrew Bud
What were the technical challenges inherent in implementing the iProov solution with UnionDigital Bank?
Our challenge was to ensure that every UnionDigital Bank customer, wherever they are and whatever device they have, could securely and effortlessly verify their identity.
In a mobile-first economy, many customers in the Philippines rely on budget Android phones or devices that are sometimes five to seven years old. It’s important that iProov’s technology delivers the same standard of performance irrespective of camera quality, operating system version, processing power or weak connectivity for those in rural areas.
The solution also had to be accurate across all ages, genders and skin tones among UnionDigital Bank’s diverse customer base. Extensive model training ensures reliable facial verification even in challenging lighting or environmental conditions.
At the same time, digital identity must be both secure and simple. Striking that balance is where much of the innovation happened. Through Express Liveness, we enabled users to be verified seamlessly, while Dynamic Liveness is activated for sensitive or high-risk scenarios.
Bringing these threads together was the key to delivering a solution that truly serves all, in line with UnionDigital Bank’s objective of expanding safe and inclusive financial access.
How did iProov work with UnionDigital Bank in implementing the solution?
iProov worked in close collaboration with UnionDigital Bank to design and implement a risk-based biometric authentication framework that protects customers from account takeovers and mule activity while keeping access effortless for legitimate users.
Fraud threats have become more sophisticated and adaptive. Social engineering, account takeovers and mule activities are often powered by emerging technologies such as AI and have made traditional defences increasingly ineffective.
The result was the integration of iProov Dynamic Liveness for high-risk or regulated transactions, and Express Liveness for everyday use, giving UnionDigital Bank the flexibility to adjust assurance levels in real time based on risk.
Throughout the rollout, iProov worked closely with UnionDigital to monitor performance and ensure compliance with evolving guidance from the Bangko Sentral ng Pilipinas and international cybersecurity standards.
What future technical requirements does iProov foresee evolving over the life of the partnership?
When we think about the future of digital identity, it’s not enough to solve today’s challenges. We also have to anticipate those of tomorrow.
Fraud is constantly evolving, and the tools available to criminals are advancing quickly, especially with the huge advances in AI. UnionDigital Bank needs not only access to the most advanced technology, it also needs a partner who can respond effectively to the rapidly evolving landscape of threats.
iProov’s Security Operations Centre ensures that we can monitor attack patterns continuously across the world and respond rapidly before they become a danger to the bank. Because our solution is cloud-based, we can roll out real-time security upgrades to every customer without delay, disruption to the bank or disturbance to the service. This capability will become increasingly critical as fraud becomes more sophisticated and ensures that the responsibility is not passed down.
The future of this relationship is driven by one principle: staying ahead rather than catching up. As threats evolve, our technology will always aim to stay one step ahead, ensuring that the bank can rely on a secure, inclusive and trusted digital experience for every customer on every device.
