Indian banking has evolved over the last 20 years, from being only branch-centric, then moving towards ATM, then towards online, and now towards digital. While it is still early and this area is evolving, and we need to see which way it will swing, the bank is making a big push to grow digitally.
HDFC Bank's Biometric loan approvals
It has launched the biometric programme ? targeting 3-5 million auto customers, again based on their spend analysis. The bank will install biometric machines across 500-800 dealers across the country for two wheelers/four wheelers. This will be linked with its internal database and AADHAR database. It will be possible to approve loans on the spot, and disbursement will be possible as well. This should give a boost to its auto and two-wheeler loans
HDFC Virtual cards, designing own loans
It will be launching an instant card programme for an HDFC Bank customer. Customers will be able to obtain an e-card via a click from a mobile. We understand that, of the top 10 million customers, 3 million do not have credit cards. While the e-card customers can start transactions on the net immediately, physical cards will take two days. This should improve customer retention.
Of HDFC?s total 32 million customers, 25 million are liability customers. Most of them also have security accounts; the bank will design a loan against the security product for them, in which they can set up limits, and choose the stocks against which they want the loan; this will be on tap and can be changed at any time.
HDFC Digital Wallet
Given the fast increase in digital wallets by a few players in India, especially Paypal and Paytm, and the likely emergence of payment banks, it was inevitable that the existing banks would become very aggressive in digital.
With its new launch of Payzapp, which seems to have been received well in the market, the initial focus is to tie up with vendors. While it has few big vendor tie-ups (e-commerce sites) currently, over the next six months, the bank strives to have about 100000 vendor tie-ups.
