FINTECH GROUP

ASSGIMENT

Submitted to

Prof. Ankur Mehra

Submitted by

Aman Jain – 2110120004

Shivansh Pathania – 2110120025

Karnika Dubey – 2110121026

Arpita Gupta - 2110120007

 Fintech Group Pvt. Ltd.

Technical Proposal - Payment Management System

By 
Fintech Group Pvt. Ltd.

For 
UCO Bank
Dated- 18 February 2022 

Contact Info: 
Shiv Nadar University
NH91, Tehsil Dadri, Greater Noida, Uttar Pradesh 201314
Contact Number: 9953XXXXXX
Email Address: a***@fintechgroup.com.

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Contents
Company Overview...................................................................................................................................3
UCO Bank Characteristics.......................................................................................................................4
Opportunities for UCO Bank...................................................................................................................6
Problem Statement....................................................................................................................................7
Proposed Solutions....................................................................................................................................8
Comparative Analysis.............................................................................................................................10
Final Recommendation..............................................................................................................................13

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 Fintech Group Pvt. Ltd.

Company Overview 

Fintech Group Private Ltd. was incorporated in 2020 by four co- founders. The main purpose of
the fintech group is to lend a helping hand to the Public Sector banks which are struggling with
adopting new technologies in the financial sector at reasonable cost.

At Fintech Group Private Ltd. we are aware that creating client-oriented software takes a mixture
of technical excellence and clear communication and our firm hires only the very best to ensure
you receive both.

Fintech Group Private Ltd.'s managed services are intended to help banks by providing
completely managed technological solutions at a decent cost. Our aim is to implement a lean,
scalable solution with a proactive problem-solving technique that maintains your systems
functioning at top performance.

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UCO Bank Characteristics

With a 25.8 million customer base, UCO Bank (United Commercial Bank) was founded in 1943,
and was nationalized in 1969. The government of India still owns 94.4% stakes in the bank.
Since its a PSU bank its presence in India is all around with major customers being rural
population and government employees. It’s one of the Indian banks which used to have a big
international presence but now is limited to Singapore and Hong Kong. 

UCO Bank has over 3000 units spread all over India and all units are equipped with core banking
technology. Even though the major overseas financial operations are in Singapore and Hong
Kong but have agreements and agencies around the world to help their customers from anywhere
they are in the world. UCO Bank is involved in forgin exchange business with more than 50
centres spread across India.

Being in service for over eight decades UCO Bank has gathered some Strength which are listed
below:
 Foreign exchange Operations: 
UCO Bank is one of the twelve public sector banks which has this operation under their arm
which is the major earning for the bank in the past five years.
 Diverse Asset portfolio:
The bank has a very diversified portfolio ranging from investment in government securities,
bond debenture, mutual funds, shares to investment outside India as well.
 Strong Capital Base:
As UCO Bank is a government owned bank with 94.4% stacks, the capital base is strong and
rigid.
 High Proportion of Long-Term Liabilities:
The lenders of UCO Banks trust the bank operation, due to which they have a high
proportion of long-term liabilities, which basically means there is a constant influx of
liquidity when needed without any time limit to repay.
 Overseas Presence with Profitable Overseas Operations:
UCO Bank is one of the few public sectors bank in India with some oversea presence left
mostly in Asian countries like Singapore and Hong Kong.

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As there are perks of being a public sector undertaking such as strong backing from the
government itself, there are some drawbacks as well.
  Weak Digital presence:
That's the major concern for the bank in this era which can hinder the performance of the
banking business and can majorly affect the profits and acceptance in the current market,
even if we compare it with other public sector banks like Bank of Baroda, State Bank of
India, which we think is a major drawback and is hindering the growth of the bank in urban
population
 Low international presence:
Even though in the discussion we had earlier that UCO Bank has branches outside India as
well and numbers used to be high but after the nationalization of the bank it has lost major
international location due to political, and high cost of operation factors.

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Opportunities for UCO Bank

In recent years the financial sector has shown a growth in technology and after the Covid
pandemic has given rise to new emerging technologies. Some of the opportunities that UCO
Bank should consider are as follow:
 More penetration through rural banking:
The major customer base of the UCO Bank is rural population, which should be the target
segment for the management and should focus on rolling out products and services which
are appropriate for rural areas like more affordable agricultural loans and helping to
prioritize Medium and Small Scale Industries and help them to grow. 
 Offline UPI Based Mobile Payment:
As we know that the customer base of UCO Bank is majorly rural population and the
telecommunication services in rural India are still in the developing phase and some areas
lack a reliable internet connection which causes hindrance in day-to-day transactions. Banks
can explore the opportunity of starting offline UPI based payments which can be done from
anywhere without relying on the internet.
 FEBA Implementation:
UCO Bank’s online banking doesn't offer much to its customers and the recent lockdowns
and restriction has really slowed down the pace of business transactions as well as personal
banking. With FEBA (Financial E-banking Architecture) UCO Bank will be able to offer
more financial and non-financial services to its customers through their online portal. 

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Problem Statement

The current problem is the slow-paced operation of the application currently outgoing as the
UCO Bank transaction app for its users; we have through various methods of trials and errors,
figure out the brief problems that the people are facing while we did some in house testing the
following are some of these issues:

1. Lag in loading time from opening the app to going to home page
2. The app does not have a feature to recognize all the bar codes available in stores for
payment
3. The time taken for transactions from A(user) to B(Receiver) takes time.

We have already in our previous memo explained how such issues have been at the helm of
disregarding the company’s name and making it irrelevant to the current market where the
competitors are already taking advantage.

The main bulk of users that are currently using UCO Bank and its services are Government
salaried employees and rural people that are government scheme to receive compensation.

The aim is to reach out to other people that are not aware of the newer services offered by the
app by solving the issues written in the above pointers.

From our initial market research, we have realized that people are opposed to using the UCO
Bank for major day-to-day transactions due to the issues received on the application and its uses.

The current user for such applications is the young generation and they demand a faster way to
transfer money which the outgoing application does not offer and thus this market is left
untapped by the UCO Bank.

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Proposed Solutions

The proposed solutions written here are comprised of extensive market research and a brief
competitive analysis by other banks in the same field, and how their outgoing application is
making disruptions in the field by offering solutions to primitive problems faced by other
customers in this same field.

We have divided our proposal into 2 parts, first stating the solutions through a technical company
and the second through a financial solution.

Please see below the proposed solutions:

1.     With the current load on the servers, we propose to increase the number of servers and
make changes to the code in the backend (preferably a combination of python/r) of the
application in order to reduce the time taken from opening the app to going to the home page.

2.     With the current outgoing application, we identified that the system is unable to recognize
the QR codes at the stores due to a lack of data in the system, we propose a thorough testing
route of the application by various QR codes and make changes to the code in order for the
application to recognize the codes for every application.

3.     We recommend the increase in servers in order to handle the data coming in and going out
from the application in order to increase the time taken for the money to go from point A to point
B.

4.     We would be happy to provide the support for increasing the servers for the application and
also make changes to the backend of the code.

Given now that we have an ample amount of data for all the consumers making transactions on a
daily basis, we propose the following opportunities from the perspective of a Financial
organization:

1. Given the huge amount of data of all the transactions made daily, we can curate offers for
the clients based on their spending habits.
2. Given the huge amount of data of all the transactions made daily, we can reach out to
various shop-owners and approach them for loans.
3. Given the commercial usage of the application, we can reach out to various B2B clients
such as Urbancompany, Loreal, Lenskart, etc., in order to offer their specific coupons as
cashback to the clients and charge a fee accordingly to the companies.

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We hope the above proposed solutions are to your kind consideration and satisfaction.

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Comparative Analysis 

Indian Bank has a strong international network of banks with 240 overseas correspondent
banks in 70 countries whereas Indian Overseas Bank is present in countries like Singapore,
Malaysia, Sri Lank but have a very few number of branches across the country as compared
to other brands and Bank of Baroda has 95 overseas branches, this having an advantage over
other PSU’s Banks in India although UCO Bank has over 2000 Service Units spread all over
India and is present in some of the international locations for the last 60+ years like
Singapore and Hongkong and is carrying out profitable overseas operations. This
international network is further augmented by correspondent arrangements with leading
banks.
Even though Bank of Baroda is one of the biggest names in public sector banking in India
still they have a Strong advertising and branding of the brand and a great hold in Urban
population which increases their revenue and has a strong legacy of the bank since its
inception in 1908 whereas Indian bank has a rural banking expertise however, UCO is one of
the oldest and major commercial bank of India.
UCO bank lacks International presence as its competitors like Bank of Baroda and other
PSU’s has a strong name and presence in the international market.
UCO Bank has a very weak internet banking when compared to big banks, at during these
day and age financial and digital banking is a must for every bank to foster in the market.
Indian Bank has a low number of ATM’s and branches as compared to other big bank
brands, Bank of Baroda has 10000+ ATMs whereas UCO Bank has over 3000 Service Units
spread all over India.
UCO Bank has a high proportion of long term liabilities. For the banks, the longer the
liability, the more it is beneficial. Apart from this, it has a well-diversified asset portfolio
with a large and diversified client base of more than 25.8 million, whereas talking about the
Capital adequacy ratio then Bank of Baroda has a good capital adequacy ratio (CAR) of 13.2
per cent. The bank’s total assets were at INR 305,860 million. The bank’s solid capital
position allows it to maintain its solvency levels even in the face of challenging market
conditions where the UCO bank stands with the Capital Adequacy Ratio of the Bank
at 14.56% and CET-I Ratio at 11.73% as on 31.12.2021 vis-à-vis Capital Adequacy Ratio at
14.31% and CET-I Ratio at 11.37% as on 30.09.2021.
The marketing share of The Bank of India has to work out more on its services as Less
Advertisement Leads to Lower Brand Presence. It has to come up with regular campaigns
both online and offline to bring in new customers or to retain existing customers, talking
about the UCO Bank, the bank is a too class bank which believes in maintaining a
sustainable image throughout the years. It has always promoted its brand through media and
advertisements in hoardings, papers, magazines, dashboards of websites, etc. and through
digital promotions. All these helps UCO Bank to position its brand and maintain visibility

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amongst the public and customers. All these factors have somewhat made UCO Bank
standalone to acquire net profit rises 775.82% in the December 2021 quarter.

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Fintech Disruptors
Fintech is the most powerful disruptor of financial institutions in current time. Whether it's
providing new ways to improve the customer experience, responding to regulatory change (such
as open banking), processes that underlie new payment or digital delivery concepts, making
service delivery faster and more cost-effective, or improving the efficiency of back-office
functions — the wide variety of fintech solutions now available or in development are assisting
in rapidly redefining the entire value chain of financial services. 

Traditional financial institutions — banks, insurance, and asset management firms — have been
compelled to adapt to a new reality as a result of the rapid expansion of fintech. Products,
services, and business strategies that have been successful for decades are no longer viable in the
technological environment.

We realized that in order to maintain profitability, UCO Bank must redefine what it does and
how it does it. Competitors are expanding as well, and it's not only fintech pounding on the
market door - major tech powerhouses, retailers, and other global corporations are looking for
ways to deliver the financial services customers expect.

These are some of the reasons why Fintech Group and UCO Bank should collaborate for the
development of banking and financial services. Among the technical advances that have had an
impact on banking activities are:

 Increased use of mobile devices: If UCO Bank needs to connect with their customers,
the company can get our assistance about how to make the products and services they
provide mobile-friendly.

 The evolution of the cloud: This implies that customers could access their banking
information from virtually any location, and the financial information is also updated in
real-time. Previously, accounts had to settle overnight so that they could have the most
up-to-date information. The cloud has facilitated faster transactions as well as easy
accessibility.

 Increased accessibility of online services: While many people still go to a physical bank
branch whenever they need to use the services of their financial institution, many have
also embraced online banking, utilizing it to transfer money between accounts, deposit
checks, and follow their transactions.

 Increased security awareness: Data security is critical throughout a whole type of

online transaction. It may be even more crucial in the banking business, where people's
life savings are frequently at risk. In reaction to data breaches, financial institutions have
prioritized security and the protection of sensitive data. Working with Fintech Group,
which understands vulnerabilities and how to protect against them will prove its
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necessity, considering UCO bank may not have the resources to focus on data protection
on its own.

When UCO Bank and Fintech Group collaborate, we will assist to build on recent changes in
behavior and usage of technology and to develop services that effectively engage with
consumers' trust and satisfaction.

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Final Recommendation

Given the solutions, we recommend starting the onboarding process for the company into the
vendor payout systems so we can start with the billing process as soon as possible, after that is
done we would like to initiate conversations with your IT team to see what are the issues in the
server systems and how we can start with increasing the number of servers in the bank system
and initiate the data migration, data load, etc., we would like to also have a look in the backend
process of the system in order to understand the basic codes behind the system and see what all
changes we can make via our IT, to add or to remove any coding or to change the basic coding
language. Moving on to the financial aspects of the solution proposed we recommend pilot
testing as soon as the application is rolled out so that we can collect and collate the data of the
people using the application and track spending habits to start curating the offers specifically for
the customers.

We need to start the above process and follow the protocols as soon as possible because as
explained in the presentation we already have competitors moving in this sector and gaining
speed.

We recommend that UCO bank share their final data of all the users with us so that we can also
analyze and inform the kind of server load that the application will require and how much
bandwidth we would require in order to increase the number of the servers.

To summarize:

1. Initiate a meeting with IT in order to:

a. Increase Servers
b. Check codes 
2. Start pilot test to run apps and collate data.

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