Inside HDFC Bank’s plans to beautify its digital offerings



In job postings on his website, Zeta called the project “Plutus” and said the idea was to create a “digital bank” from scratch to serve customers over 2.5 crore. of HDFC Bank.

In a research report dated June 2, Bernstein Research said that while building a digital bank within an existing bank is good, moving all customer data could be a tedious exercise.

“The bank will likely want to pilot / launch new product SKUs on Tachyon and iterate with the team to resolve issues, before they transition their large existing product SKUs from legacy core banking systems,” said Bernstein Research in his report.

Zeta will be in charge of transaction processing, user interface management and user experience on the credit card product, the person quoted earlier said.

HDFC Bank is also redesigning its credit card underwriting processes.

To do this, the bank works with external partners to better read customer data and speed up approvals, if customers meet the risk criteria. The partners are also helping the bank develop internal scores, the person quoted earlier said.

For small businesses too, a new service system will be deployed, available on all platforms.

The second important element is the upgrade of existing IT systems.

In this context, the bank is also building a new data center in the medium term. They are also moving towards cloud-based systems.

In a recent interaction with analysts hosted by Macquarie Research, HDFC Bank CEO Sashidhar Jagdishan said the bank is on track to implement the ‘next big hunk’ on technology in the coming months. .

Jagdishan also spoke about decoupling existing systems at the bank, so that a failure of one system does not affect the functioning of others.

“They [HDFC Bank] are already migrating applications to a cloud-based architecture and would strive to shift completely to cloud-based systems in the medium term, ”Macquarie said in a report citing their conversation with Jagdishan.

According to Akshay Garkel, partner and cyber leader at Grant Thornton Bharat, the creation of new technology initiatives should be supported by strong crisis management and incident response plans.

“While you can bring a new level of technology to improve uptime, companies need to make sure the rubber hits the road. This means more simulations during exercises on multiple scenarios, ”said Garkel. “Banks should seek to implement a board-approved crisis and incident management framework that provides considerable assurance that there is a minimum of inconvenience to customers during the crisis period. real. “

HDFC Bank has given no indication, even to analysts, of the cost of this upgrade.

The lender’s other expenses, which include the costs of running the system, increased almost threefold between March 2015 and March 2020 to reach Rs 14,682 crore.

According to Asim Parashar, partner at PwC India, Indian banks tend to underinvest in IT infrastructure.


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