New Delhi: Focusing Small & Medium Enterprise (SME), Retail Banking and Agri-business as its growth vehicles, Union Bank of India (UBI) is undergoing a major business process re-engineering (BPR) drive, which will make its branches more market oriented and customer centric.
UBI has decided to centralize the process of various loan sanctions. 33 select centers have been identified all over the country for this purpose, which will handle home loans, education loans, vehicle loans etc. The loan recovery process is also being strengthened by emphasis on diligent screening, active monitoring and comprehensive documentation of all loan applications. This re-engineering drive will help the bank position itself as a well equipped institution to grab the new opportunities in retail segment.
The processing and sanction of Small and Medium Enterprise (SME) loans will now be relocated to 15 specialized Centralised Processing Centres (CPCs) strategically located at industrial areas. The bank will involve credit rating agencies to get an idea of the credit worthiness of its customers and offer differential pricing based on the risk profile of a borrower.
Union Bank is also planning to extend its coverage in rural areas and bring around 25,000 villages under its service. Active use of Biometrics, information technology and hand held devices will be made to achieve this goal of providing door-step services to rural masses. Union Bank will also set up Village Knowledge Centers, which will spread banking awareness among concerned population.
The branches will now focus on marketing effort with regular back office processes like clearing work, account opening, issue of cheque book, dispatch of statement of accounts would be carried out from the centralised back offices. Union Bank is seeking the services of reputed Management Consultants, Boston Consulting Group to assist the bank in establishing this new business model and achieve new levels of growth.