City Union Bank Signs MoU to Establish AI Centre of Excellence for Banking

Mumbai, 07 March 2026: City Union Bank Announces Strategic AI Collaboration

City Union Bank has entered into a quadripartite Memorandum of Understanding (MoU) with Centific Global Solutions Inc, SASTRA University, and nStore Retech Pvt Ltd to establish a Centre of Excellence in Artificial Intelligence for Banking (CoE/AIDF).

The agreement, signed on March 7, 2026, aims to accelerate AI-driven innovation in banking operations, enhance digital transformation initiatives, and create industry-ready talent in artificial intelligence for the financial sector.

Purpose of the AI Centre of Excellence

The Centre of Excellence in Artificial Intelligence for Banking will focus on developing advanced AI solutions to improve banking efficiency, risk management, and customer experience.

Key focus areas include:

Fraud detection systems powered by artificial intelligence
Credit risk analytics for better lending decisions
Customer behavior modeling to enhance personalized banking services
Regulatory compliance automation to improve operational efficiency

The initiative is expected to strengthen the bank’s digital infrastructure while enabling the development and deployment of AI-based technologies tailored to banking requirements.

Roles of Each Partner in the Initiative

The collaboration brings together expertise from technology, academia, and implementation sectors.

City Union Bank – Business Partner
The bank will contribute industry insights, banking expertise, and testing support for AI-based solutions relevant to financial services.

Centific Global Solutions – Technology Partner (AIDF)
Centific will provide the Artificial Intelligence Development Framework (AIDF) and technological capabilities required to design and develop AI applications.

SASTRA University – Knowledge Partner
The university will support research, academic programs, and training to nurture AI talent specifically for the banking sector.

nStore Retech Pvt Ltd – Implementation Partner
nStore will handle deployment, operational integration, and technical implementation of the developed solutions.

Leadership and Governance Structure

As part of the agreement, City Union Bank will nominate a senior executive to serve as the Industry Co-Chair of the Governing Council of the AI Centre of Excellence.

This governing council will guide the centre’s strategy, research priorities, and implementation roadmap.

Focus on Talent Development in AI for Banking

In addition to technological development, the centre will work on building industry-ready talent in artificial intelligence through:

Specialized academic programs
Internships for students
Certification courses in AI for banking

This initiative is expected to create a pipeline of professionals skilled in AI-powered financial technologies.

Regulatory Disclosure

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing stock exchanges about the strategic partnership.

The bank clarified that:

The agreement does not involve any shareholding arrangement.
The parties involved are not related to the promoter or promoter group.
The transaction does not fall under related party transactions.

Strengthening Digital Banking in India

The establishment of the AI Centre of Excellence highlights the growing role of artificial intelligence in the banking sector, particularly in areas such as risk management, fraud prevention, and customer experience optimization.

With collaboration between industry, technology providers, and academia, the initiative is expected to accelerate innovation in AI-powered banking solutions in India.