HDFC Bank Digital Tranformation

HDFC Bank set up a Digital Factory and an Enterprise Factory to roll-out new digital products and
services in the future and augment its IT Infrastructure. The Digital and Enterprise factories will be
pivoted on APIs, data and cloud.

The dual approach of building the Digital Factory along with an Enterprise Factory is part of the
bank’s technology transformation agenda to run and transform the bank. The bank proposes to
strengthen capabilities for the Digital and the Enterprise factories by hiring up to 500 people over
the next two years, from diverse backgrounds such as data analytics, AI, ML, Design Thinking, Cloud
and DevOps.

The Digital Factory will build new business and new solutions riding on new tech stacks/applications
and high resiliency and monitoring capabilities. This will be backed by the ability to support large
volume growth and plan for upgrading technologies. The bank is also developing future-ready IP
technologies and moving to a native cloud architecture in collaboration with niche technology
companies, fintech and large IT companies. Ensuring reliability, availability, scalability and security
will be at the core of the Digital Factory’s endeavours.

The Enterprise Factory will upgrade legacy infrastructure, decouple existing systems and build its
own capabilities by embracing open-source to build resilience and scale.

“The Digital and Enterprise factories will help us realise the strategy of ‘running’ the bank, while
‘building’ the bank for the future,” Mr. Parag Rao, Group Head – Payments, Consumer Finance,
Digital Banking & IT, HDFC Bank. “We are poised to capitalize on opportunities that higher digital
adoption will bring in India. Our endeavour is to provide seamless experience to our customers
across all platforms, on the back of resilient infrastructure. Since inception, we have led the digital
transformation of the Indian financial services sector and continue to invest in technologies to
improve customer experience and enhance efficiencies. This is changing the paradigm by redefining
financial services and designing products and services by always keeping the customer at the
centre.’’ [1]

HDFC ties up with Accenture for digital transformation

The collaboration will revamp HDFC's customer experience and business processes to provide
greater operational agility and efficiency, and drive business growth.

The housing finance major has collaborated with Accenture to digitally transform its lending
business. The transformation exercise is aimed at making HDFC's lending lifecycle paper-less and
nimble.

A key element of the program is a cloud-native lending platform with digital workflows for every
step of the customer journey including application, loan processing, credit underwriting and
decisioning, disbursement and loan servicing. It leverages a machine learning-based decision engine
aimed at improving risk mitigation and driving agility by standardizing the credit underwriting
process, Housing Development Finance Corporation (HDFC) said in a statement on Thursday.

Renu Sud Karnad, managing director, HDFC said: "The ongoing market disruption in the mortgage
industry calls for a focused commitment to digital-led reinvention of customer experiences, which
we believe will be pivotal to driving future growth."
 In addition, a mobile application with a specially designed, gamified user experience will help HDFC's
large sales field force and channel partners track business leads and service customers in real time, it
added.

Sonali Kulkarni, who leads financial services in India for Accenture said: "We are excited to be a key
partner to HDFC in their next frontier of customer-centric innovation digitalizing their lending
process from beginning to end. By taking a cloud-first approach, HDFC will be able to leverage the
power of digital innovations and embed AI-driven insights throughout their lending lifecycle. The
platform will also serve as a template for additional, new customer services and capabilities, all
made possible by a cloud-based digital core, which is essential for enterprise reinvention."

HDFC is the pioneer of retail housing finance in India. It provides home loans for affordable housing
and continues to have the largest number of home loan customers at over 3,14,000 who have
availed benefits under the government's Credit Linked Subsidy Scheme.

The housing finance major's standalone net profit rose 16.37% to Rs 3700.32 crore on 5.13%
increase in total income to Rs 12308.46 crore in Q4 March 2022 over Q4 March 2021. [2]

References

[1 R. Banerjee, "HDFC Bank set up a Digital Factory and an Enterprise Factory," 22 June 2021.
] [Online]. Available: https://www.hdfcbank.com/personal/about-us/news-room/press-release/
2021/q1/hdfc-bank-creates-digital-and-enterprise-factories-to-enhance-digital-banking-
experience#:~:text=Mumbai%2C%20June%2022%2C%202021%3A,on%20APIs%2C%20data
%20and%20cloud..

[2 Business Standard, "HDFC ties up with Accenture for digital transformation," 2022. [Online].
] Available: https://www.business-standard.com/article/news-cm/hdfc-ties-up-with-accenture-for-
digital-transformation-122060300177_1.html#:~:text=The%20housing%20finance%20major
%20has,lifecycle%20paper%2Dless%20and%20nimble..