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Union Bank of India takes a step towards digital transformation; a super-app gets launched

BNE ADMIN


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Union Bank of India launched its super-app named UnionNXT and digital transformation project SMBHAV on Wednesday, with an investment outlay of around Rs 1,000 crore for the current financial year 2022-23 (FY23). The public sector lender expects recovery from the spending in two years and aims to have 50 percent of business originating on the digital platform by 2025.

With this, it joins the league of super-apps by large lenders such as State Bank of India’s Yono, Bank of Baroda’s Bob world and HDFC Bank’s PayZapp, and ICICI Bank’s I Mobile.

SMBHAV: Union Bank launches super-app UnionNXT and digital project SMBHAV

A banking super-app essentially combines a number of services, such as payments, online shopping, bill payments, recharges, investment, loans, and fund transfer, on a single platform.

Nitesh Ranjan, executive director, of Union Bank said at present the focus is going to be on enhancing digital offerings for liabilities, loans, and wealth management. Mumbai-based public sector lenders will expand the ambit of super-app for the marketplace, that being able to use app features to make purchases of consumer products and services in the next phase. However, it did not specify a timeline for such an offering for the marketplace.

Also Read: https://www.thehindubusinessline.com/money-and-banking/union-bank-of-india-to-invest-1000-cr-to-steer-digital-banking-project/article65296962.ece

Rajkiran Rai G, managing director, and chief executive said the aim is to build the capacity on a digital platform.

Union Bank today brought five online Customer-Centric Digital Lending (end to end Straight Through Processing) journeys -- Pre-approved Personal Loan, Union Cash (Pensioner loan), Shishu Mudra Loan, MSME Loan-Auto-renewal, KCC loan-Auto-renewal. It rolled out of digital applications viz. SoftPos & CRM Application.

BNE ADMIN