The United Commercial Bank (USO) has restructured its policies to fall in line with the governments ‘Aatmanirbhar Bharat’ program, with an increased focus on lending to retail, Agri, and MSME sectors amid COVID-19 crisis, according to its yearly report. The bank is expecting several technological initiatives for customer convenience to yield “good results” in the coming months.
The Covid-19 pandemic and the resulted lockdown from late March to June caused an unfavorable impact on all sectors of the economy including banking. The bank has restructured its policies to implement the Aatmanirbhar Bharat package proclaimed by the central government, to align with the current situation.
UCO Bank said, their focus is to enhance lending to retail, agriculture, and micro, small and medium enterprises (MSMEs). Also, the bank will extend emergency credit lines, on merits, to the borrowers who were affected by the covid 19 economic crisis.
The Bank has also taken up several technological initiatives like switching to Finacle 10, enhancing the software of mobile, internet, and phone banking. These improvements in customer convenience might bring the best results in the coming days.
Furthermore, the bank will focus on mobilization of low-cost resources to improve its bottom line with the aid of PHYGITAL (physical and digital) network. UCO Bank said, “Bank is in the process of revitalizing its loan processing with the adoption of technology-driven loan origination system which will be rolled over in a couple of months. With the adoption of this system, there will be almost end to end automation of loan appraisals and lapses in loan processing can be avoided to a great extent. With the speedy approvals, the bank will boost its retail portfolio”.
Moreover, the bank said that it will focus on reinforcing its customer reach techniques by a tie-up with a few fintech firms that are having proficiency in the assessment of GST and Income tax returns, the examination of bank statements, financial statements, customer details including the behavioral pattern of customers.
A K Goel, UCO Bank Managing Director and Chief Executive Officer, said the bank is in the way of adoption of Loan Originating System (LOS) to improve its evaluation techniques through technology-driven end to end automation of loan evaluation system. Using the LOS facility, borrowers will also be able to apply for funds on the bank’s website and can avail of the benefits like the option of branch selection while applying for a loan, follow the status of a loan application, and details on unsettled loans reasons through e-mail/SMS.