TECH&

DIGITAL
LANDSCAPE
May 2022
Agenda

1 Digital Ecosystem @HDFC Bank

2 Digital Banking – Key Shifts

3 Investing in Core Tech Transformation

Enterprise Factory: Re-architecting Core

4 Technology

5 Customer Delight! Across Segments…

6 Customer Experience Re-imagined!

2 Investor Presentation
Digital Ecosystem @HDFC Bank
6,300+ 18,100+ 3,100+ 7.1cr
Branches ATMs cities/towns Customers
One consistent digital experience
Over 57 cr credit card
and nearly 48 cr debit card
transactions in FY 21-22.
Number of Digital transactions in
FY21-22 (645 cr) 3X of that in
FY 18-19 (210 cr)
93% of all transactions in
the bank are digital
3 Investor Presentation
Mobile Banking
• Monthly active users as of
Mar’22 grow 40% vs Mar’21
• Financial transactions up by
51%
Internet Banking
• Monthly active users as of
Mar’22 grow 20% vs Mar’21
• Financial transactions up by
32%
• 76% of Fixed Deposits
booked online.
EPI 16 cr and POS 130 cr
Transactions in FY 21-22
UPI
• 45 cr bank customer transactions
per month
• Doubled in the last 12 months..
E-Commerce Card
Volumes on Payment
Gateway:
• 1.75x growth in 3 years
• Avg value of Rs.40.5k Cr per
month (Feb-Apr’22)
• Projected growth of 25% in 12
months (Mar’23 over Mar’22)
Onboarding Forms
Digital Unassisted Acquisitions
• Credit Cards up by 84%*
• Personal Loan and Business
Loans up by 71%#
* 3-Month Average before Revamp
# 6-month Average before Revamp
Corporate Banking
• Large Corporates: Avg. of
3.32 cr transactions per
month
• MSMEs: Avg. of 49.2 Lakh
transactions per month
The Future is Digital

DIGITALLY SOURCED RETAIL ASSETS DIGITALLY SOURCED LIABILITIES

PERSONAL LOAN 97% FIXED DEPOSITS 76%

TERM DEPOSITS 69%

TW O WHEELER LOAN 80%

SAVINGS ACCOUNT 67%

CREDIT CARDS # 79%

RECURRING DEPOSITS 55%

AUTO LOAN 60%

SALARY ACCOUNT 46%

TERM LOANS
CREDIT CARDS** 56% CURRENT ACCOUNT 11%

Figures as of YTD Mar ’22 Figures as of YTD Mar ’22

# FY 21-22; Dec ‘20 to Mar ’21 embargo
** Excluding CC - EMI

4 Investor Presentation
What differentiates us?

Drivers
Scale: Delivering technology at global scale

Geography

Mix: Assisted and Unassisted; Urban and Rural Diversity

Metro vs Rural

Technology: New tech supporting scale, security and experience

DBUs

93% of the Bank’s transactions are processed digitally

5 Investor Presentation
Technology & Infrastructure
demands mirror the growth story
Transaction Volumes Trend
7X
UPI switch volumes over 3 years, now
averaging 4 cr transactions per day

3X
Growth in Core Banking
transaction volumes

444 Cr
ATM Switch transactions FY 17-18​ FY 18-19​ FY 19-20​ FY 20-21 FY 21-22
in FY 21-22
Core Banking​ ATM Transactions Retail Assets UPI (Fin Txns)

1,400 70% + 90,000

Number of internal APIs published growth in published partner Concurrency Capacity on Net & Mobile
increased by 50% plus over last 2 years APIs in the last 2 years Banking.
Recorded peak utilization: 60,416

6 Investor Presentation
Digital Banking – Key Shifts

Differentiated
Customer Experience Strategic Nurturing Tech Talent

Design frictionless journeys

Pillars Transforming people practices
to adapt to new ways of working
for straight through processing

Fostering a culture of
Digitization of branches with innovation, agility & growth
paperless journeys

Create neo customer Gen X to Gen Z: leveraging diverse

digital experiences skill sets as a key enabler

Rapid Innovation at Scale Resilient & Secure Core Systems

New products & journeys Zero-trust architecture, advanced

designed at pace and scale
Plug-&-play integration with
new age FinTech partners
Best-in-class products &
services powered by innovation,
agility-at-scale
Data & Platform Orchestration platforms & analytics for best-in-
class security posture
Embedded AI / ML capabilities
spanning products & processes
Next level Disaster Recovery with
automation and ‘Hot DR’ setup
Deeper analytical capabilities &
synergized operational efficiencies
Multi-cloud strategy, data center
consolidation augmented with
API-fication of data to enable scalability through containerization
sophisticated customer journeys

7 Investor Presentation
Investing in Core Technology Transformation

Strengthening Cloudification Journey API Transformation program

Tech Foundations Implementation of a Hybrid API gateway (APIGEE & OBP Middleware)
Cloud Landing Zone Enhanced API orchestration

Infrastructure, Data Centre AIML based Security Deep Refactoring key

Security & Migration and Monitoring Automation applications into
in DR resiliency an ‘Active-Active’
Resilience State of the art, Tools for the application
and orchestration design
new age facilities in and network ecosystem
to reduce RTO
Bengaluru & Mumbai

Testing Automation Unified IT Service Low code / no code

Better efficiency and quality management platform development
Tech for Tech Partnerships with RPA providers through ServiceNow For improved consistency
(like UIPath) and new age and standardization
companies (like Headspin) Through new age platforms
like Microsoft PowerApps
& ServiceNow

8 Investor Presentation
Enterprise Factory: Re-architecting Core Technology

Goals / Design Principles

Co-creating Deep Tech Moving beyond Powered by partnerships – Cutting

owned IP Skills digitizing existing edge startups to Big Tech (AeroSpike, Security
ecosystem YugaByte, Kafka, Temporal…

In-house capability
Hollowing the Core Mobile Banking Better customer experience
app rewrite Faster time to market

Horizontal Scalability

Re-designing
Payments Hub Enterprise CIF and Digitizing Focus on Always ON
User Journeys Active-Active architecture

Adaptive and Unified Pluggable and Origination, servicing, Security, Journey

Payments control Plane extensible enterprise transaction workflows simplification, Cloud Agnostic
across multiple customer master UI / UX refresh
payments channels
Single version of truth Development underway
Extract out of legacy
Secure storage of PII
core -> core ‘hollowing’ Neo technology stack /
& stabilization neo partnerships

9 Investor Presentation
Customer Delight! Across Segments…

Retail Rural Banking

MSME Corporate Wealth
Customers & Govt. Initiatives

Day to day banking, Transforming commercial Seamless banking Investments Fueling the Digital
made simpler banking for India’s services for large Simplified! Bharat growth story
entrepreneurs, Micro, Small corporates, mimicking with a local touch!
& Medium Enterprises retail experiences
Simplifying Deeper
customer journeys customer Analytics Focusing on
Leverage the supply Deepen the ERP assisted journeys
Deep insights through data Self service
chain ecosystem embedding
APIfication and AI ML capabilities Multilingual
Native journeys Digitizing Trade capabilities
Focus on assisted and Digital
for local markets
unassisted journeys Integrate with open enablement Deepening
360 degree view market credit ecosystem of digital
Unified payments Enhanced Wealth
for proprietor and distribution points
experience across UPI RM capability through
retail intersection
and other association data analytics
rails (credit/debit)
Enhancing customer
experience across
touchpoints

With Re-imagined Customer Service at the Forefront!

10 Investor Presentation
Now & Coming Up: In 4 Quarters
Xpress Car Loans
Onboarding Forms with suite
of personal loan offerings
Fastag
Digital Credit Cards
Co-branded cards with
embedded API capabilities;
e.g.: PineLabs & PayTM
Smart & Insta Account Opening
Retail
Customers
Mobile Banking
(Enhancements & Re-write)
Internet Banking Upgrade
Customer Experience Hub
Payzapp 2.0
EVA Chatbot – Integrated with
Alexa and Google Assistant
PWA
11 Investor Presentation
Acquisitions
Ecosystem APIs for supply API ecosystem for digital DSAs
chain integration – HUL & business correspondents
& Dukandar
Corporate Banking: Phased CSC VLEs
Platform Transformation
Loan Origination &
Management Transformation New Pension Platform
APIfication of Corporate Wealth App
transactions MyApps
Merchant Onboarding System
Rural Banking
MSME Corporate Wealth
& Govt. Initiatives
BizXpress: Digital Tradeflow: Wealth Management Retail Assets Re-architecture:
portal platform for Digitization of trade System (Domestic Refresh of complete suite of
MSME customers processing platform & Overseas) SLI products
Smart Hub Vyapaar E-Kisaan Dhan App
Merchant Ecosystem
India’s First Warehouse
Commodity Finance App
Servicing
Xpress Car Loans
Potential & Opportunities

3rd largest auto-market in 90% of all car buying journeys begin 50%+ of incremental sales growth
next 5 years, witnessing sale online (compared to 74% likely to come from Semi-Urban/Rural
of 35mn+ new vehicles in 2016) but <2% converted online compared to 30% in 2018

Xpress Car Loans Highlights

Paperless with Faster Approval & Omni-channel Customer-centric

Minimal Fields Digital Disbursal Available across touchpoints – physical Experience
Seamless journey e2e disbursement with (branches & dealerships) and digital Choose “any car,
leading to quick offer video KYC in Phase 1 (Bank app, website & aggregators) any dealer, any time”
generation online

Market Disruptions
End to end digital lending journey from Seamless loans across Anytime-anywhere digital auto
present paper-based journey, catering geographies, expanding reach loans with seamless
to both ETB & NTB customers – first to semi-urban and rural buyers connectivity to multiple platforms
scheduled bank to do so in India

offers in <1 min approvals < 5 mins Taken in disbursals

Microservices
based architecture API First Cloud Ready
Witness the journey
disbursements expected

12 Investor Presentation
Zero Touch Onboarding… made possible

Acquisitions made simpler, faster

Customer Benefits:
New form design for
improved user experience
Modernized experience by allowing customer to
access content across channels and devices
Savings A/C
4X

Business Enablers:
Faster time to market for digital offerings
Tracking customer drop offs and ability
provide a digital nudge customers to Personal Loan
2X
resume incomplete journeys

Tech Foundations:
A Single Digital Forms Platform Credit Cards
2X
Born in cloud, Hosted in AWS

Post-Revamp Pre-Revamp

13 Investor Presentation
PayZapp: convenience, safety and
rewards in one neo tech powered app…

Customer Benefits:
• Superior payments experience
• Unified Rewards and Offers
Monetize Acquire • Enhanced Security Features
Payments Upsell New Customers
Cross-sell

Business Enablers:
• Seamless Onboarding
• Intelligent Insights
• Unmatched Reliability

Tech Foundations:
• Fintech partnership
• Cloud Ready - Hosted on AWS
• Microservices based Tech stack
Engage • API First Strategy
Make PayZapp their default payment app

14 Investor Presentation
Engaging the merchant ecosystem with SmartHub

•
•
Fully digital onboarding
Open FD account
>4X 4.3
• Apply for credit cards customer Play store rating
• Check for PA eligibility transaction volume
• Access to collateral free business loans up to INR 15L

Payments-in-a-box
• All in one payments app – Tap to pay,

•
CC, DC, QR codes, UPI and SMS pay
Record cash/ cheque transactions
60%+ 1.5X
using cash register app transaction Activation
• Easy reconciliation of payments Volume rate achieved

B2B Digitization
• Hassle free distributor and vendor
payments using business cards 4.45 Lakh 1.5X
• Get up to 45 days of credit
• Pay utility bills and GST payments Merchants on Current Account
the app Balances

Business Solutions
• Accounting/ GST filing solutions Neo tech stack Partnership with new
• Business dashboard for valuable insights
• 24*7 chatbot for all queries and offers (Yugabyte database) age Fintech
• book for maintaining credit transactions
Hosted on AWS Cloud

15
15 Investor Presentation
THE
FUTURE
IS DIGITAL