Union Bank of India today announced an investment of Rs 150 crore on information technology (IT) to provide state-of-the-art banking service to its customers.
The bank's 'Project e-mpact' will see Wipro Infotech and Infosys Technologies come together, in a spirit of collaborative competition (co-opetition), for implementation.
Wipro is the prime integrator for the project. The company will integrate Infosys's core banking solution 'Finacle' & internet banking product 'BankAway'; FSS (Chennai) for ATM switch (Base24) and for telebanking systems BK Solution, Chennai.
Under 'Project e-mpact', Union Bank proposes to bring 20 branches under the core banking solution platform (whereby these branches will be interconnected and the bank will have a centralised database) within this calendar year. The bank is seeking to cover 500 branches in 50 centres under this platform within three years and 1000 branches in five years.
The platform includes support of 200 ATMs, apart from other IT-enabled products and services such as internet and tele banking.
According to Union Bank's general manager VK Khanna, :"the bank's IT strategy is to offer integrated services through mulitple delivery channels - internet, ATM, telebanking etc. The platform will also aid in effective customer relationship management and detailed customer profiling."
Implementing core banking solution will enable the bank, which has an employee strength of 27,559, to redeploy staff/ optimal utilisation of manpower, he added.
V Leeladhar, chairman and managing director, Union Bank, said that there were no immediate plans for a second round of voluntary retirement scheme. "We will be able to get a proper perspective next year when 100 branches will be rolled out. A large number of staff can be withdrawn from the drudgery of routine work and can be employed for marketing of new products. We will get a clear picture as to the manpower situation only in the second year of the implementation of the core banking solution."
The bank's data centre at Mumbai will be ready by the end of this month and it is also planning to set up a disaster recovery site.
Infosys Technologies chairman N R Narayana Murthy, " Wipro has got tremendous expertise in hardware while Infosys' forte is software. We have come together in a spirit of co-opetition."
According to Wipro chairman's Azim Premji, Wipro will be responsible for maintaining and servicing the installed base of the bank.
"The major focus of the bank will be on new initiatives. We do not have a cash management system now, which can be rolled out afterwards," said Leeladhar.
