Union Bank launches super-app UnionNXT, digital project SMBHAV

Will invest Rs 1,000 cr in FY23; plans to rationalise metro branches as digitisation progresses

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 per cent 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 iMobile.

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

Referring to tie-ups with fintechs, Ranjan said about two dozen entities have partnered with the bank to develop various applications. The intellectual Property rights of applications remain with the bank.  At present there is no plan for acquisition of fintech to augment internal capacity. While much of work has been carried out internally, The bank will rope in an advisor for digital transformation.

Rajkiran Rai G, managing director and chief executive said the aim is to build capacity to do whatever you do in a branch on a digital platform. This would impact the functioning pattern of branches, releasing staff for value added work. Over a period there could be some rationalization of branches in metropolitan areas but not in rural and semi-urban areas.

Union Bank today brought on-line five 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.