Ujjivan Financial Services on February 6 commenced operations as a small finance bank (SFB) with launch of five pilot branches in Bengaluru.
These five branches, Ujjivan SFB said, will provide full service offerings. “In the next one month, the bank will comprehensively test its technology, channels, people and processes as part of its rollout,” the bank said in a statement.
The SFB added that it plans to extend these services across 457 branches in 24 states in a phased manner over the next few months.
Samit Ghosh, MD and CEO, Ujjivan Small Finance Bank, said, “Ujjivan SFB would offer a no-minimum balance savings bank account with the full range of banking services and benefits using the latest technology to unserved and under-served customers”.
He added that the SFB is adopting a unique strategy to grow their liabilities book. It is aiming to tap the estimated R5 lakh-crore and upward unorganised segment (such as chit funds, cooperative credit societies, fly-by-night operators), where people who are at the bottom of the pyramid and from low-income group keep their savings.
Deposit products in the range of 5.5-8% which, it said, is higher than the average rate of interest offered by most banks. “The 3.5 million customer base and industry high customer retention rate of Ujjivan reiterate the success of our decade-long commitment and validates our approach to serve unserved and under-served across the country,” Ghosh said.
Customers of Ujjivan SFB will have unlimited access to ATM transactions on Ujjivan’s ATM network and a total of six free transactions on other bank’s ATM networks. It will also offer remittance services, enabling customers to transfer money within Ujjivan and other bank accounts in a very reasonable and affordable manner.
“Ujjivan SFB has significantly focused on training and re-skilling the existing workforce to take up new, diverse and strategic roles in the bank. Of the current employee strength of approximately 10,000, close to 2,000 are new entrants with banking backgrounds,” it said.
Source: The Financial Express
