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How Ujjivan Small Finance Bank Leverages Technology to Serve the Under-Served, IT News, ET CIO

Ujjivan started his journey as an NBFC in 2005 and started his banking operations as Ujjivan Small Finance Bank in 2017.

Since 2017, the bank has made several technological investments, in particular Core Banking Software (CBS), CRM, Internet & Mobile Banking platform, Contact Center Software, Tab Based Lending, RPA platform, API platform, AI platform, etc.

The bank wants to serve the unserved and underserved segments of society with the best-in-class, scalable, reliable, secure and profitable experience. “Technology plays a key role in overcoming this challenge, as we don’t want to compromise on customer experience just because of the segment we serve,” said Dheemant Thacker, Chief Digital Officer, Ujjivan Small Finance Bank.

Ujjivan Small Finance Bank, aims to combine high technology with high technology to digitize customer experiences, whether customers visit branches, interact with field agents or use one of the self-service channels.

The company has digital channels such as Internet Banking, Mobile Banking and Business Net Banking. Ujjivan Small Finance Bank pioneered a self-service digital onboarding journey for liability products early on and is now being used effectively to drive customer acquisition through digital marketing as well as branch sales agents.

On the asset side too, all of the bank’s assisted onboarding journeys are digitized through fintech reconciliations as well as using solutions from established software service providers.

Thacker considers data analytics to play a key role in customer and business decision making. Ujjivan Small Finance Bank is in the early stages of building an analytic culture.

Starting with knowing the current and latent needs of its clients to help verticals make decisions, the bank plans to invest in a data lake architecture and also include AI-powered data analytics and the ML.

“It’s definitely in our future roadmap and we see this as a key differentiator. For example, we use data analysis models to identify customers who might be more likely to increase their balances given our attractive interest rates. These models are also used to improve digital adoption, especially for digital collections, where we identify customers who are more likely to pay their IMEs using digital modes or through our fintech links and let’s encourage them to do it more regularly, ”Thacker said.

Using data analytics based on customer data as well as external data obtained from credit bureaus, the company implemented campaigns to establish balances, cross-sell products to increase the number of products per customer as well as to promote the adoption and use of digital and digital channels. collections.

Banking API

Thacker has effectively put the entire bank on the API platform through 159 APIs ready for use by fintechs, startups, and software service providers.

Ujjivan Small Finance Bank has integrated 6 fintechs via its API Banking platform and many are already in preparation.

“API Banking is definitely at the heart of our digital banking strategy. As we just started, we are currently registering approximately 300,000 API calls per month from the 6 partnerships to date. In addition, we processed Rs. 100 Cr. loan and clock worth nearly Rs. 300 Cr. monthly collections from partnerships powered by API Banking, ”said Thacker.

Currently, all USFB banking systems are on-site.

“Although we have implemented customer onboarding paths, digital loans as well as collections through API partnerships with fintechs that are on the cloud. We believe that cloud technology should be evaluated and adopted with caution. We need to reach a consensus and clearly identify the benefits to be derived from moving to the cloud rather than opting for the cloud because it is the “in-the-in thing”. At Ujjivan Small Finance Bank, we have identified clear advantages of the cloud and the strategy will roll out consistently in the near future, ”he added.

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