Money & Banking

City Union upbeat on Net banking as volume grows

L. N. Revathy Coimbatore | Updated on July 14, 2011

Dr N. Kamakodi, MD, City Union Bank.   -  Business Line

While the emphasis has been on use of Net banking, customer adoption, bankers say, “has generally been slow”.

“Such offerings/services are yet to sink in. Customers are apprehensive about using the Net banking services,” observe bankers.

But the Managing Director of Kumbakonam-headquartered City Union Bank, Dr N. Kamakodi, observed that CUB's Net banking transaction volumes had overtaken ATM transactions in the last two quarters.

“It's strange, but we are happy to note that the average daily hits on the ATM is around 30,000, whereas Net banking transactions are slightly higher at 32,000/day. In fact, senior citizens are relying on the Internet banking service a lot more than before, as it gives them the comfort of transacting from home,” Dr Kamakodi told Business Line.

Expanding usage

The usage of the Internet banking platform, according to him, is no longer limited to booking of rail tickets. “Today, there is a sharp increase in online remittance of electricity bills, followed by e-ticketing, renewal of FDs online, and tax remittances.”

He said that the decision to invest and offer various tech-savvy services, in the fond hope that it would become the order of the day sooner than later, had started to see results.

And the bank has, to encourage the use of the Internet banking platform, started to offer these services for free. “There is greater awareness today,” he added.

CUB has a network of 250 ATMs across the country.

The use of the Internet banking platform might have caught on, but customer crowding at the branches is a sight that one cannot wish away.

Asked to comment on this, Dr Kamakodi explained: “Earlier all our customers had to necessarily visit the branch to transact. Now, the customer base has increased, volumes have risen, but not all customers drop in at the bank's branch.”

Published on July 14, 2011

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