HDFC Bank’s Digital journey & CIO’s take on getting Enterprise Digital Ready

Munish Mittal

Group Head – IT & CIO

HDFC Bank Limited

HDFC Bank – Future Ready

NEFT / RTGS Transactions

Highest RTGS volumes

Second Highest NEFT after SBI.

NetBanking

175 types of transactions

61 lacs active users

MobileBanking

Highest Mobile Banking transaction volumes (by

value)

POS and mPos

Highest share of both issuance and acquiring market

in India ; 3 crs txn pm

E Commerce

Market Leader with 42% market share ,

– 2.5 Crs txn pm

Tax Collection

91% of tax collected through online mode.

CBDT / CBEC - Second largest in the country

Rural Initiatives

12000 customers registered for Government Payment vide Arthiya

Cards.

Total Amount Received in FY 14-15 is Rs 10,168 Cr

Innovation

Prepaid card customised solutions , Mobile / Net based solutions and applications like Chillr , PayZapp ,

SmartHub etc.

Digital @ HDFC Bank : all pervasive reach

• Net and Mobile Banking

175 +Txns offered on NetBanking

75+ services (financial + non financial transactions) offered on lite site and App

Services offered across platforms: SMS, Toll-Free, USSD, Lite Site, Smartphone Apps. Hindi Android app.

11 non financial transactions offered on SMS

4 non Financial transactions offers on Toll-Free Mobile Banking

Comprehensive and Convenient : Our Digital Platforms

Most txns are

online, real time

Accounts, FD

• View A/c details

• Download A/c Stmt

• Book FD /RD

• Liquidate FD/RD

• Add a Nominee

• Sweep in For FD

Fund Transfers

• Transfer Funds Within Bank

• Transfer Funds to Other Bank Accounts using

• NEFT

• IMPS

• RTGS

• Chillr

Bill Payments

• Pay Utility Bill, Mobile Bils

• Pay through A/c, Debit /Credit Card

• Top up Mobile / DTH PAymets

Others

• View Loan details

• View Credit Card details and make payments

• Redeem points for Debit /Credit Cards

• Invest in Mutual Funds

Value Added

• Form 15 G /H

• Prefilled Deposit slips

• IPO Application

• Live Stock ticker on Demat

Page

Mobile Banking usage has increased at a YOY rate of 88% (Mar ’13 – Mar ‘15)

Mobile Banking demos at branches is unique to HDFC Bank – Over 3.24 Lac demos given each month

MobileBanking

Offers 75+ transactions – the widest amongst all banks in India.

The value of Mobile Banking transactions at over Rs.

60.3 Bn (as on Mar ‘15) is more than double of our

nearest competitor

In FY 14-15, we increased penetration of Mobile Banking in

Rural areas by 92% and Semi Urban areas by 76%.

SMS / Toll Free Banking

• Provides banking convenience to users with feature phones & no data connectivity

• Frequently used trx like A/c Info, Balance Enquiry, Cheque book request

• 4 trx on Toll free channel free to customer

• 10 trx on SMS banking channel available in English & Hindi

USSD Platform - * 9 9 #

• Provides convenience of cashless funds transfers to users with feature phones & no data

connectivity

• Funds transfer can be done by knowing beneficiary’s MMID or A/c No.

Mobile App & Mobile Lite Site

• Provides banking convenience to users with smart phones

• 75+ transactions including A/c Info, Funds Transfers, Bill Payments, Investments etc • Across all platforms: Android, iOS, Windows, Blackberry, Symbian

Mobile Banking : for all segments and profiles

Wearables : Watch Banking on I Watch

Cashless P2P and P2M transactions

Lets users send money immediately to anyone in their phone

book 24x7

Allows Proximity Payments: Send money without sharing

mobile numbers

No POS terminals required for P2M

Ideal for Small & Medium merchants

Separate P2M App ‘Chillr 4 Business’ to be launched soon

for merchants with multiple sales staff / accepting COD

In just 4.5 Months:

Over INR 13.8 Mn cashless money transfers

234,657 downloads

P2P Payments right from the contact list

P2M payments uniquely

done in Chandigarh

Chillr

PayZapp

SmartBuy

“First in Industry”: A One Stop Online portal, offering customers powerful discount offers, rewards redemption and pay by EMI.

HDFC Bank is the first bank in India to launch WatchBanking

Only bank in the world with maximum number of features on its

Apple Watch App

Set a worldwide industry benchmark on how banking can look like

on a smart-watch.

Most commonly used features now come with a greater

convenience:

View A/c information

Bill Pay & Recharge

Request A/c Statement & Cheque book

Locate HDFC Bank ATMs & Branches

Hotlist Debit Cards in case of emergency / card loss

Call the bank using Apple Watch

Locate offers and deals

Future Ready - WatchBanking

Copyrights © HDFC Bank Confidential / Restricted / Internal / Public*

Market Demand - eCommerce Transactions - 2015

• Sale by etailers – Amazon & Flipkart (13th Oct-215 to 17th Oct-2015)

– 20 lac+ products

– Flipkart turnover of $300 million in GMV (Gross Merchandise Value)

– We processed approximately 1.65 lac to 2.20 lac transactions for market

places like Amazon, Flipkart… value over 200 crores

• Overall peak of ~150tps of which over 15 to 30 peak tps range

from likes of Flipkart, Amazon …

Copyrights © HDFC Bank Confidential / Restricted / Internal / Public*

Enterprise alert Engine Sources for Messages

All CASA alerts (Netbanking, Insta alerts(Real Time & EOD) and

InstaalertFC)

OTP alerts (Netbanking and CBCI)

All transaction alerts via PRM and replicated through Oracle Golden

Gate (PRM)

35+ other source system

SMS and OTP alerts sent via multiple aggregators

Processing avg. 7 million alerts per day ranging 600tps-800tps (designed

for 1100tps)

30% alerts growth QoQ

Demand is to process 25 million alerts per day at whooping 2500 TPS

Copyrights © HDFC Bank Confidential / Restricted / Internal / Public*

IRCTC transactions – Direct Debit

Around 50,000 txns. per day

20% booking in 3 tatkal windows

8.00 AM (Start of booking for

new trains)

10.00 AM (Tatkal window for

AC booking)

11.00 AM (Tatkal window for

Non-AC booking)

All transactions are OTP enabled.

Avg. 1500 logged in Users during

tatkal window

Peak of ~2500 logged in Users

observed.

0

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3500

4000

28-Sep-15 29-Sep-15 30-Sep-15

01-Oct-15 02-Oct-15 03-Oct-15

Copyrights © HDFC Bank Confidential / Restricted / Internal / Public*

IMPS Net/Mobile Outward Transaction Flow 1

2

3 3

4 5 6

7 8

9

10

11 12

13 6

7

8

8

Digital Banking

Cloud

Leverage Technology

Sell More

Big Data

E-Commerce

Customer Delight

Customer Acquisition

Self-service is best service e-KYC Digital & on-line A/C Opening Real-time scoring, pricing &

approval Templatize credit buying & policy

administration to empower front-line

Customer centric Analytics Leverage AML, Fraud Prevention &

Scoring engines, Bureau data Close loop feedback fm across

channels Integrate social Leverage complaints,

voice(sentiment) data fm within enterprise

Enhance customer offerings E-tailing E-education E-tax E-governance

Logistics & Settlement Target all products

Future-proof architecture Agility to respond to rapid

change Common business services Workflow management Complex event processing Payment Hub Universal Payments Parametric Authorization Voice Biometric AADHAR, IMPS, EBPP Commerce Gateway

Demand Management 24x7 Availability Infrastructure

optimization

Channels Net Mobile ATM & POS Call Center Branch Video TV, Kiosk

Consistency of User-Experience Portal

Context based content Personalization Search Seamless navigation SELL Behaviour Analytics Sophisticated GUI

Real-time & Interactive Statements Rich common Transactions set across

channels

Offers, more relevant offers Date of validity & expiry of

offers Enhance life-time value of the

customer Store front culture, sell

everywhere Click-2-buy

Strictly Confidential © Financial Software and Systems Pvt Ltd

HDFC Bank & FSS partnership since 1996 (Content & slide courtesy FSS)

Payment Gateway

1. Nation’s first hosted PG & live since 2005

2. Over 16000 Merchants Integrated

3. Processing over 25 Mn Transactions per month

IMPS

1. No.1 processor for IMPS in terms of Value of Transaction in FY 2014-15

2. First bank to enable Chillr App that allowed funds transfer to contacts

3. Processing over 2.5 Mn Transactions per month

Financial Inclusion

1. First Bank to meet DFS mandate of Rupay Card Acceptance in PMJDY Scheme on Micro ATMs

2. Over 2500 Micro ATM Deployed on hosted services offering

3. Bank of Wheels launched in 2014

4. Leading Bank in Pungrain Project & Nestle Project

ATM Switch, Cards and Managed Services

1. EFT Switch - BASE24 : SI, Services, Support – since 1996

2.DCMS – since 2003 ; 53 Mn+ Cards issued

3.Reconciliation since 2003

4. DCC on POS since 2011

5. ATM Managed services – 5000 ATMs (commencing in November 2015)

HDFC Bank & FSS Partnering for Growth

Note: All data above is approximate numbers and subject to explicit confirmation to be obtained from HDFC Bank before any intended or unintended use.

Thank You