Union bank launches union NXT and SMBHAV
What is the news :
- Union Bank of India on April 6 launched its super app, Union Nxt which focuses on providing pre-approved personal loans, pensioner loans, Mudra loans, MSME loan auto-renewal services, and farmer loans auto-renewal services to customers.
- Union bank also lauches digital transformation project SMBHAV with an investment outlay of around Rs 1,000 crore for the current financial year 2022-23 (FY23)
- The bank is looking to invest nearly Rs 1,000 crore in building and upgrading its digital technology in the present fiscal, as per the bank’s management.
- It has tied up with over a dozen fintechs to upgrade its digital offerings, the bank’s management told reporters.
- “Large part of this investment will go into building a digital architecture which will be open and modular. On top of this, we will be building a digital lending platform so some part of this investment will go there, and simultaneously our mobile platform will also get updated and another part will be the data analytics,” said Nilesh Ranjan, executive director of the bank.
- Further, the bank is likely to announce a slew of new digital projects going ahead and some of these include digital enablement of insurance, mutual fund, warehouse financing, GST cash-flow based lending, Tarun & Kishore Mudra loans, co-lending and pool buy-out, and providing housing loan and education loan online.
- The overall objective is to have 50% of the business originations coming from digital channels by 2025, we are already seeing early trend. today as I speak almost 15% of fixed deposit accounts are getting open through a mobile channel and that is happening without any kind of reaching out effort to customer
- Traditionally, the bank was onboarding, on average, 6,000 to 7,000 new customers on its mobile app; however, today the lender is adding more than 20,000 customers every day, Ranjan added.
- The bank presently has 1.65 crore customers on its mobile app and aims to take the count to 2 crore this year
About Union bank of india :
- MD – Rajkiran Rai G.
- Headquarter – Mumbai
- Founded on – 11 November 1919
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