Will UOB's contactless services take off or flop?

It is aiming for more ways to boost customer engagement.

As it focuses to build more interactions with its customers, Singapore's United Overseas Bank (UOB) has taken one step further towards digital banking with the rolling out of contactless payments and contactless ATMs.

According to a report by research firm UOB Kay Hian, the bank envisions to create more interactions with its customers as digital banking focuses on front-end sale and distribution channels.

"Digital banking creates value by increasing the frequency of interactions with customers. UOB
also makes extensive use of data analytics to understand customers’ needs and preferences, so as to improve the quality of life for its customers," the report explained.

UOB was the first to roll out contactless payment using Android-based smartphones in the Asia Pacific region with the launch of UOB Mighty.

"To make payments at retail outlets, customers simply have to launch the UOB Mighty app, click the “pay” function, select the desired credit or debit card, enter the PIN and tap on the NFC-enabled contactless payment terminal using their smartphones," it noted.

With the app, customers may also perform daily banking transactions, pay bills, and transfer funds.

More so, the report pointed out that the bank is also the first in the world to offer instant issuance of digital credit cards through
smartphones. Customers are able to apply and receive digital credit cards in minutes.

In the coming months, UOB will also launch the first NFC-enabled contactless ATMs in Southeast Asia.

With the technology, customers will be able to use ATMs with just a tap using their mobile devices, scanning their their thumbprint and keying in their pin.

The report mentioned that there will be 60 contactless ATMs by January 2017. Eventually, all current ATMs will be replaced by new contactless ATMs by December 2018.