UNION BANK TO CASH IN ON ‘CASHLESS CAMPUS'

Ms Megha Aggarwal, a first year student at the Rajiv Gandhi Proudyogiki Vishwavidyalaya, Bhopal, pays her fees and other campus expenses through her mobile.

She is not the only one; around 2,500 students in the university make payments in the campus through a mobile POS device rather than going to the varsity office and standing in queues.

They don't even need to carry the mobile; they can do all their transactions using just their mobile PIN and the number on the POS device at the campus.

This mobile banking service — which has freed the Madhya Pradesh State Technical University from the hassles of time-consuming cash and cheque transactions — is part of the “Cashless Campus project”, launched by Union Bank of India in September.

The bank is now talking to other institutions in Madhya Pradesh and nstitutions in other States.

Leveraging technology

The bank, which is the first to offer mobile service after the Reserve Bank of India permitted it two years ago, is trying to leverage the technology to reach the next level of growth.

The bank has invested nearly Rs 100 crore in innovating and developing business models and systems.

Talking to Business Line on the banks' technology initiatives, Mr.M.V.Nair, the Chairman said: “Financial inclusion can be done only through technology. But by the time it gains mass, it will be four to five years. The first mover will have the advantage. We are the first mover. We had expected to break even in five years. But we may do so even faster; in three years.”

The bank currently has about three million biometric smart-cards and the target is to increase this to 10 million by 2013.

Union Bank is offering technology-based products such as Internet banking, mobile banking, ATMs and call centres.

Transactions through other channels – ATM, Internet and mobile – accounted for 6 per cent of the transactions in 2008. Now it has increased to 40 per cent and may touch 45-50 by the end of the fiscal.

Documentation management

The bank has now embarked on a major documentation management project. It is a step towards paperless operations.

The real impact will be seen when banking services are delivered at the doorstep. For instance, if a kirana store is offering banking services, the system should have the flexibility to collect small instalments. This is where documentation management will be useful.

SOURCE: http://www.thehindubusinessline.com/2010/10/21/stories/2010102151870700.htm