Union bank launches union NXT and SMBHAV

 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

Recent news about union bank of india :

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17th IBA’s Annual Banking Technology Awards 2021 announced

• Indian Banks’ Association (IBA) has announced the IBA’s 17th Annual Banking Technology Awards 2021. In total South Indian Bank has won 6 awards in the event. This year’s IBA Awards celebrating “Next Gen Banking” has recognized technologies and practices in the banking industry that have demonstrated a high degree of innovation over the past year.
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• Large Banks: Union Bank of India

Cloud Adoption

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It is a joint venture between the Bank of Baroda, Union Bank of India, and Carmel Point Investments.

Vedanta Ltd has tied up a facility of Rs 8,000 crores (replacement facility) with Union Bank of India at 7.75% to take over the majority of the syndicated facility after discussions with lenders. During 2020, amid the COVID-19 pandemic, Vedanta Ltd had tied up a syndicated facility of ₹10K crores with the State Bank of India as the lead bank at a running cost of 10.5 per cent.

Ambit Finvest has announced the signing of a co-lending agreement with Union Bank of India (UBI) for financing to Micro, Small and Medium Enterprise (MSME) customers. Ambit Finvest is the Ambit Group’s non-deposit-taking Non-Banking Financial Company (NBFC).