Thanks to its huge population and rapidly growing economy, the value of India’s domestic remittances was US $13 billion in 2010 and has an expected growth rate of 15 percent year on year. Of these remittances, 90 percent are channeled through banks.Read the full case study
90% of India’s domestic remittances funnel through banks.
Lalit Sinha, General Manager at Union Bank of India
Domestic Remittance Load Pressures Bank to Find an Alternative
Supporting domestic remittances was placing such pressure on its branches that Union Bank of India decided to provide an alternative channel that would be capable of providing a 24x7 facility while remaining highly secure, reliable, fast and easy to administer. With this objective in mind, the bank decided to implement a new solution across its extensive ATM network.
Union Bank Creates an ATM Solution to Handle Remittances
Domestic remittances are monitored strictly by the Indian regulator, which allows for several national schemes, the most important of which are the National Electronic Funds Transfer (NEFT) and Inter-bank Mobile Payment (IMPS). The regulator also monitors the Union Bank of India’s own Union eCash mobile-based remittance service. The bank decided to make all three remittance service available through its ATMs, creating a convenient, one-stop shop that offered real choice to its customers.
Union Becomes First Bank to Make Inter-Bank Transfers on ATMs
The project was undertaken as a part of well-defined strategy to empower the bank’s customers through greater use of self-service options. It is the first bank in India to make inter-bank financial transfers available on ATMs, as opposed to branch or internet banking channels, which makes the facility available to a far broader customer base. It relieves pressure on branch staff, improving productivity and allowed them to spend quality time with customers on sales and service. It has also provided a convenient, self-service and popular solution that enables the bank to improve customer acquisition and retention rates, and enhance its bottom line through eventual fee-based income.