Private sector lender Union Bank of India has announced the launch of a super app, Union nxt, as part of its digital transformation strategy, media reports said.
Concurrently, the bank also announced the launch of several digital offerings such as a pre-approved personal loan, pensioner loan, MSME loan auto-renewal services, farmer loans auto-renewal services, and app-based deposit module among others.
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Union Bank of India plans to invest around INR10bn ($131.86m) to build and upgrade its technology in this fiscal year, the bank told the reporters during its digital conclave.
Earlier this week, in a stock filing the bank informed about the digital conclave, which would mark its foray into creating a “digital bank within bank”.
It has also allied with several financial technology companies to enhance its portfolio of digital offerings.
Union Bank of India executive director Nilesh Ranjan said: “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.
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By GlobalData“The overall objective is to have 50% of the business originations coming from digital channels by 2025, we are already seeing early trends…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.”
Currently, the bank caters to around 16.5 million customers and plans to take that number to 20 million in 2022.
