Business Strategy

Case Study
HDFC Bank's Digital Transformation Journey

Article Details

Pub. Date	: Dec' 2023
Product Name	: The IUP Journal of Business Strategy
Product Type	: Article
Product Code	: IJBS031223
Author Name	: Smita Ray and Anil Anirudhan
Availability	: YES
Subject/Domain	: Strategic Journals
Download Format	: PDF Format
No. of Pages	: 13

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Abstract

The case talks about the digital transformation journey of HDFC Bank and the different measures taken under its digital transformation agenda. A brief history of the bank, along with its digital offerings, is presented. The case discusses the digital initiatives by the bank in 2015, including its 'Go Digital' initiative and the mobile app for its customers. It also highlights the actions taken by the bank to enhance its digital platform in 2017 and 2018. HDFC Bank faced several technical issues during the period 2018 to 2021, and to resolve them, it opted for an agenda of technology transformation in June 2021. The case dwells on this agenda in detail and also on the future plans of HDFC Bank to expand its customer base and enhance its presence in the digital payments space.

Our endeavor is to provide seamless experience to our customers across all platforms, on the back of resilient infrastructure...1

- Parag Rao, Group Head - Payments, Consumer Finance, Digital Banking and IT, HDFC Bank, in June 2021.

Digital channels and growth in the number of customers have been given a lot more importance by banks than investments in fundamental software and technology capabilities...2

- Jaya Vaidhyanathan, CEO, BCT Digital3, in March 2021.

Introduction

In November 2021, HDFC Bank-the second largest bank in India-launched a micro credit facility for street vendors under the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme4 and Common Service Centers (CSC)5 scheme.6 This facility enabled village-level entrepreneurs (VLEs)7 to avail of the benefit of the PM SVANidhi scheme on the Digital Sewa Portal.8 To avail of the facility, VLEs were required to link their mobile numbers with their Aadhar cards9 and meet the eligibility criteria of the scheme. Smita Bhagat, Country Head (CSC, E-commerce, Startups and Inclusive Banking Initiatives Group), HDFC Bank, said, "Through the launch of PM SVANidhi, at HDFC Bank we will be able to provide special micro-credit facility to small street vendors through our CSC VLEs for their holistic development and economic upliftment."10