Mumbai, April 06

Union Bank of India (UBI) will spend ₹1,000 crore on digital banking initiatives in a bid to ensure that at least 50 per cent of its business originates via the digital route by FY2025.

Rajkiran Rai G, MD & CEO, UBI, emphasised that the bank is planning a ‘digital bank with bank’, which will lead to lot of cost savings and increased business volumes as this will enable customers to do transactions on mobile without having to visit the branch.

The bank on Wednesday unveiled the contours of its upcoming super app ‘Union nxt’ as part of its future ready digital transformation project ‘Union Sambhav’.

Nitesh Ranjan, Executive Director, UBI, said a chunk of the investment on digital banking initiatives will be in the current financial year. He underscored that the savings accruing to the bank will more than offset the investment made over two years.

He said a customer can do on ‘Union nxt’ most of the transactions that he/she currently does at branches.

Referring to more than 90 per cent of UBI’s MSME customers having loans up to ₹10 lakh, Ranjan observed that lot of man-days are lost at the time of annual renewal/ enhancement of loan limits. But with digital banking, customers can renew/enhance loan limits in two clicks as cash flow based lending and GST data allow this.

In this regard, he assessed that the cost savings would be as much as ₹500 crore from this segment alone.

Ranjan said Union Bank is seeking to give omni-channel experience to its customers. It is also in the process of building a digital lending platform.

The bank also unveiled digital banking based products, including pre-approved personal loans (up to ₹5 lakh), Shishu Mudra loan (up to ₹50,000), MSME auto loan renewal (up to ₹10 lakh), agri loan (Kisan Credit Card) auto renewal (up to ₹1.60 lakh), among others.

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