UCB steering Bangladesh to a cashless economy

The future is digital, it is often touted. And that is where United Commercial Bank is firmly heading with its revolutionary mobile application Upay, which was rolled out in Bangladesh on Tuesday.

If the bank has its own way, soon the need to carry cash to purchase goods and service will become a thing of the past, as one's smartphone will provide that convenience.

All one would need is to scan the unique QR code generated by the app at the point-of-sale terminal and the payment would be made.

"This is a never-seen-before technology in Bangladesh," AE Abdul Muhaimen, managing director and chief executive officer of UCB, told The Daily Star.

The payments industry is going through an unprecedented level of changes all over the world with the advent of financial technologies, which enthused UCB to invest on building the next-generation digital banking platform.

"Customers are seeking a better experience from financial institutions. 'Better' means an excellent customer experience at every point-of-contact -- a highly personalised yet more simplified service; convenient and on-demand anytime-anywhere, with rapid and accurate responses."

Through Upay, UCB is focusing on enhancing existing payment systems of Bangladesh by removing structural inefficiencies that create unnecessary risks and costs to payment services, which is ultimately charged to customers, Muhaimen said.

One of the great hazards of carrying cash is that it leaves one always vulnerable to robbery, and Upay gets around the problem of security by way of state-of-the-art technology.

To activate the generation of the unique QR code one needs to key in a one-time password, which is only sent to the mobile number registered with the UCB bank account.

Under the hood, the app is powered by the blockchain technology that facilitates secure online transactions by leaving an indelible and transparent record.

"Upay is set to become a game-changer in the payments landscape of Bangladesh, both in terms of features and in terms of underlying technologies."

Muhaimen, who has more than 27 years of experience in the banking industry, is optimistic about the prospects of Upay, tipping the payment platform to be a bigger success than the mobile financial services and agent banking ones.

The importance of Upay may be seen in the context of an increasing use of various mobile devices and applications to pay for goods purchased online or at a bricks-and-mortar store as well as for transferring funds to anyone using the National Payment Switch Bangladesh system, he said.

Because of the novel nature of the technology, getting merchants on board would be the main challenge for the 34-year-old bank.

As of now, supermarket chain Agora, eating joints Gloria Jean's Coffees and Signature Food Club, e-commerce site Bagdoom.com, clothing stores Fit Elegance and Artisan, travel agents Honeymoon Tours & Travels and Pearl Bay Tourism, and electrical appliance vendor AC World Electronics signed up for the progressive payment platform.

UCB would also like other banks to sign up for the payment system, as only then would a cashless economy will be within sights.

"This is our endeavour to promote the national vision and initiative of Digital Bangladesh," Muhaimen said.

Currently available to Android users, Upay also allows users the convenience of accessing their UCB accounts and perform all banking transactions.

The app will cater to all consumer, corporate and government payment needs like merchant shopping, bill payment, fund transfer, loan repayment, inward remittance, insurance premium, salary disbursement, e-commerce and so on.

Moreover, purchase of digital cheque for gifts and redemption of voucher and reward points can be made from Upay. Regular banking activities like balance enquiry and generation of mini statement can also be performed.