Latest News | Union Bank Plans to Invest Rs 1,000 Cr in Technology over Two Years

Mumbai, Apr 6 (PTI) State-owned Union Bank of India on Wednesday said it is looking to invest Rs 1,000 crore over the next two years in technology.

"We will be making Rs 1,000 crore of investments in technology this year (FY23) and next year. A large part of this investment will take place during the current financial year," the bank's executive director Nitesh Ranjan said.

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The bank is moving from the monolithic technology structure to a very open, modular, microservices architecture in the IT system, he said.

"Large part of the Rs 1,000 crore investment will take place in building this architecture. On top of this, we will build a digital lending platform and some part of this investment will go there.

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"Simultaneously, the mobile banking platform will also get updated and because of the microservices architecture, all these channels will get updated at the same point of time and there will be an omnichannel experience for customers," he said.

The bank on Wednesday unveiled 'Union SAMBHAV – World of Opportunities', a future digital-ready transformation project along with its super app named UNIONNXT – Do it Yourself.

The lender launched five digital lending products - pre-approved personal loan (PAPL), Union Cash (Pensioner loan), Shishu Mudra Loan, MSME Loan-Auto-renewal, and KCC loan-Auto-renewal

Ranjan said the overall objective is to have 50 per cent of the business originations coming from the digital channels by 2025.

Currently, almost 15 per cent of the bank's fixed deposits (FD) accounts are opened through the mobile channel, he added.

The lender expects 60-70 per cent of the FD opening through the mobile itself going ahead.

Ranjan said nine months back, the bank was onboarding an average of 6,000-7,000 new customers on the mobile app. Today, it is onboarding 20,000 customers per day.

Its managing director and CEO Rajkiran Rai G said the bank has 1.65 crore on the mobile platform and it is aiming to cross the 2 crore mark this year.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)