Union Bank is transforming under the stewardship of CG Corp Global, its main shareholder. The shift is strategic, placing the bank on a path towards delivering digitally focused banking experiences that serve the retail, SME, and corporate customer segments.
CG Corp Global, a multinational with interests across more than 32 countries with over 20,000 employees, has a longstanding presence in Sri Lanka. It began with hospitality and has since diversified into banking and electric mobility, among other sectors. Nirvana Chaudhary, Managing Director of CG Corp Global and Deputy Chairman of Union Bank, views banking as an extension of the group’s traditional competencies. With Nepal’s top private commercial bank Nabil Bank being part of the group, he says the group aims to leverage and integrate its strengths in core businesses with digital advancements, positioning Union Bank to serve the next generation of banking customers through technology rather than physical expansion.
Union Bank’s digitalization is not a defensive strategy but a deliberate repositioning. According to Chaudhary, the move aligns with CG Corp’s belief that the future of banking is increasingly defined by convenience, speed, and integration into customers’ digital lives. Despite Sri Lanka’s macroeconomic volatility, he argues that the country’s long-term fundamentals have continued to justify investment. CG Corp’s banking strategy reflects this confidence, drawing on its operational experience in other sectors to support Union Bank’s evolution into a tech-enabled financial services provider.
Union Bank embarked on a total transformation with Digital being one key pillar in its transformation plans. The bank’s digital goals are ambitious relative to its current market position. Union Bank is one of the smaller licensed commercial banks in Sri Lanka, but it seeks to compete on equal terms with larger incumbents through digital offerings. Director/Chief Executive Officer Dilshan Rodrigo says the bank expects its digital business to grow to 15–20% of its portfolio, significantly outpacing traditional banking lines, which are projected to grow but remain under 1% of the market.
Two digital platforms are central to this strategy. UBgo targets the retail segment with a focus on youth and individuals, while UB BizDirect serves small and medium enterprises (SMEs), which comprise the bulk of Sri Lanka’s private sector. Rodrigo explains that many SMEs remain underserved by digital financial services. Through a unified platform, UB BizDirect aims to address this by connecting SME operations with their suppliers, distributors, and retailers. The bank’s approach is to build an ecosystem that provides convenience for retail users while supporting business growth through better financial integration.
The Bank has significantly invested in digital infrastructure since CG Corp’s capital infusion in 2023 and made significant progress in its digital agenda, says Manisha Fernando, Vice President Digital Banking. The bank launched a three-phase digitalization programme in 2024. The first phase focused on upgrading the bank’s digital interfaces and user experience, with the second and third phases focusing on easy customer onboarding and service enhancements. Amongst several new features, one of the bank’s recent innovations is VKYC, or video-based know-your-customer verification, which allows customers to open accounts remotely. This is expected to reduce onboarding friction and improve reach, especially among younger, tech-savvy users.
The bank’s internal transformation is also crucial, and shifting employee mindsets has been one of the most complex challenges. Digitalization, he argues, is not just about launching apps but about changing behaviours, expectations, and internal culture.
CG Corp’s involvement brings a broader perspective to Union Bank’s ambitions. Chaudhary argues that understanding generational shifts is critical to designing relevant products. He cites pop culture and entertainment examples—where streaming and gaming have overtaken legacy media—to illustrate the urgency of adapting to changing consumer behaviours. Banking, he suggests, is also subject to the same dynamics of disruption and redefinition.
Therefore, Union Bank’s strategy is to position itself as the financial partner of choice for the emerging middle-class and digitally native consumers. While the bank acknowledges the dominance of larger players, it sees room for differentiated offerings.
Rather than taking a long-term, incremental approach, Union Bank aims to deliver near-term results through innovation. The goal is to generate meaningful traction in digital channels, creating products that respond to specific customer needs while maintaining regulatory and operational rigour. UBgo and UB BizDirect are test cases for how the bank can scale digital solutions in a complex, competitive market.
Union Bank’s shift reflects broader trends in Sri Lanka’s banking sector, where digital adoption is no longer a secondary objective but a strategic imperative. With CG Corp’s backing and a renewed management focus, the bank is betting that technology can offer a path to growth without the burden of extensive branch networks to punch above its weight in a digitally disrupted financial landscape.