HDFC Bank to split payments, core

HDFC Bank plans to move out the payments module from the core banking platform and set up around 6,000 new branches in the next three to five years.

According to MD & CEO Sashidhar Jagdishan, the bank, in partnership with a new-age startup (with deep experience in core banking technology), is co-creating new core banking modules. “This project will enable the moving out of payments module from existing core banking platform and help in creating a fully resilient active payments architecture that will ensure minimal payments downtime, even if core banking is not available,” he said in his message to shareholders. “This 15-month project will be followed by hollowing the customer master modules from its existing core systems and will ensure a single system of record for customers across various products,” he said.

Jagdishan said the bank has set up a new centre in Bengaluru and the team here is rewriting the mobile and net banking platforms. The entire project will be completed in a 2-year timeframe and allow the bank to own a modern cloud enabled mobile/ net banking platform. “Enabling a new-age experience for customers, we will roll out new features every 3 to 4 weeks, in line with digital fintech companies.”

On expansion, he said, “We have 6,000 plus branches across India, and we plan to nearly double our network in the next three to five years by opening 1,500 to 2,000 branches every year.”

The branches will be digital from a customer on-boarding and transaction and servicing perspective, he said. “It will provide the emotional connect and relationship management necessary for offering financial solutions to our customers. These branches will be small in size and will be phygital relationship centres. This will enable us to go after the catchment more aggressively and build the required liability franchise that we are known for, and we are confident that we would execute well.”

“Our entire technology and digital strategy adopts a 360-degree approach that ensures resilience and modernisation of existing legacy systems and enables new age consumer experiences by partnering with modern neotechs,” the HDFC Bank MD-CEO said. “We have made rapid strides in creating the foundation and enabling new digital assets over the last one year. Needless to say, the pace will only pick up from here. Firmly committed to this transformation, the bank will continue to invest in modern technology and talent.”

“We are working on several strategic initiatives (like the wrapper technology I mentioned earlier) to tackle complaints pertaining to ‘Disputed Transactions’ (where the customer succumbs to phishing attacks by fraudsters),” he added.

As part of its technology transformation agenda, the bank is also investing in an omni-channel customer experience platform. “This will enable our customers to reach out to us through their preferred channel for service i.e., social, email, texts, voice, etc. It would also provide us a single source of customer truth across channels and would enable our frontline staff to solve customer queries and act on customer instructions in a straight through manner,” Jagdishan said.

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