Tag: Consumer Finance

credit card
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HDFC Bank issues record high of over 4 lakh cards post embargo

Oct 1, 2021 by Rekha Nair 0 Comments #Consumer Finance, #Digital Banking & IT, #Group Head – Payments, #HDFC Bank, #Mr. Parag Rao

HDFC BankMumbai: HDFC Bank announced a record of over 4 lakh credit cards issued since the embargo being lifted. The record issuance is as of September 21, 2021 and marks the aggressive growth path the Bank has charted post the embargo to re-invent and co-create its credit cards portfolio with strong products and partnerships.

The bank also announced the relaunch of 3 cards. HDFC Bank’s Millennia, MoneyBack+ and Freedom cards have been reinvented to put more power into the hands of the customers, by adding a host of new features and benefits. Creating and co-creating new card products is part of the Bank’s strategy to straddle every customer segment; be it for Bharat or India.

“As a leader in the cards space, we promised, we’d be back with a bang. We are now pushing the pedal not only to acquire new customers, but also to enhance offerings of our existing cards,” said Mr Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank.

“Our strategy to re-invent, create and co-create has been crafted based on the analysis of customers’ buying behaviour, the categories they spend on and the spend patterns. The months that we have spent readying and sharpening our strategy are now bearing fruit. We are ready to unveil best in class offerings and experience to our customers, just in time for festive season.”

The new card variants will be available to customers in October’21. Existing Freedom and Millennia card holders will also be able to enjoy the new benefits as well and will be notified by the bank regarding the same.

The revamped portfolio includes:

Freedom Credit Card – Best Card For Your Everyday Spends & BIG Purchases

The Freedom card is targeted majorly towards the youth who are starting their career. It will also cater to segment that has a greater need for credit allowing them to utilise credit for their large spends in a very affordable yet highly rewarding manner.

Key benefits:

Rewarding Affordability – 5X Cashpoints on EMI spends at merchant locations
Interest Rate of just 0.99% for 1st 90 days from card issuance date

MoneyBack+ Credit Card – The most rewarding card for everyday spends

The MoneyBack+ credit card is targeted towards middle class families who are seek value on their everyday spends. These consumers are careful spenders so HDFC Bank is offering value for every rupee spent by them.

Key benefits:

10X Cashpoints on 5 key merchants – Amazon, BigBasket, Flipkart, Reliance Smart Superstore & Swiggy
5X Cashpoints on EMI spends at merchant locations

Millennia – Best Cashback Credit Card

The Millennia card is targeted at the affluent, tech savvy consumer. It is for people in the age range of 25 – 40 years. The new avatar of the card will cover all the areas millennials are passionate about such as shopping, dining, entertainment & travel.

Key benefits:

5% Cashback on your 10 key merchants – Amazon, BookMyShow, Cult.fit, Flipkart, Myntra, Sony LIV, Swiggy, Tata CLiQ, Uber & Zomato
1% Cashback on other spends including EMI spends & Wallet Loads (except Fuel)

HDFC Bank
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HDFC Bank aims to regain credit card market share in 3-4 quarters

Aug 23, 2021 by Rekha Nair 0 Comments #Consumer Finance, #Digital Banking & IT, #Group Head – Payments, #HDFC Bank, #Mr. Parag Rao

Mumbai: HDFC Bank, India’s largest credit card issuer, today announced that it is aiming to add five lakh new credit cards to its portfolio every month beginning February 2022. This will enable it to regain its market share and cement its leadership position in the credit card issuing business in the next 9 to 12 months.

HDFC Bank has over 20 initiatives that will hit the market in the next 6 to 9 months to drive this growth. These include the launch of new co-branded cards with the who’s who of Corporate India spanning pharma, travel, FMCG, hospitality, telecom and fintech. The bank has also revamped its existing range of cards over the past 9 months and is also ready with strategic partnerships with new companies.

The new and enhanced suite of credit card products will have something for everyone from the mass market to the ultra-premium segments. There will be tailored products for customers to meet their evolving needs.

“The last few months have been spent in readying ourselves for the future. When the restrictions from the regulator were in place, we utilised the time to chalk out a new strategy. With our new offerings as well as our existing suite of cards, we are confident of meeting the needs of our customers and ‘come back with a bang’.” said Mr Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank.

HDFC Bank is the leading player in the payments ecosystem with a strong share in both credit card issuing and acquiring businesses. The bank is the country’s largest credit card issuer, and it has maintained its leadership position over the past 8 months, demonstrating the strength and resilience of the card portfolio.

Some key RBI data points that further showcase this strength include:

• HDFC Bank Credit cards spends are 1.5 times higher than the nearest competitor
• HDFC Bank has 1.2 times higher number of cards than the nearest competitor
PRESS NOTE HDFC Bank Ltd.
HDFC Bank House,
Senapati Bapat Marg,
Lower Parel,
Mumbai – 400 013.
CIN: L65920MH1994PLC080618

• HDFC Bank Credit spend per card is the highest among Top 6 banks (in terms of CIF & spends)

The bank also has a dominant position in the merchant acquiring space.

• As per RBI data, HDFC Bank consistently has the highest overall market share in merchant acquiring business. As of June 2021 the bank had 47.9% of the total market share.

• The best book quality as per franchisee data – the highest through-put per merchant

• Its SmartHub platform is an integrated banking and payments range tailor-made for all merchant categories and size

HDFC Bank has about 3.67 crore debit cards, 1.48 crore credit cards and about 21.34 lakh acceptance points, making it among the largest facilitators of cashless payments in the country. With over 5.1 crore credit cards, debit cards and prepaid cards addressing every market segment, every third rupee spent on cards in India happens on HDFC Bank cards. It has played a significant role over the years in spurring India’s consumption story. The coming festive season will help it play this role better at a time when it is perhaps needed as never before.

Paytm Payment Gateway waives off transaction fees on donations received by NGOs working for COVID relief
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Paytm and HDFC Bank announce strategic partnership for delivering financial solutions to end consumers and merchants across India

Aug 23, 2021 by Rekha Nair 0 Comments #Bhavesh Gupta, #CEO, #Consumer Finance, #COO, #Digital Banking & IT, #Group Head – Payments, #HDFC Bank, #Offline Payments, #Parag Rao, #Paytm Lending, #Renu Satti

Mumbai: India’s leading digital ecosystem for consumers and merchants (1), Paytm and India’s largest private sector bank, HDFC Bank, today announced that they have entered into a strategic partnership.

This brings together two market leaders who will drive innovative digital solutions for financial transformation in the country by combining their strengths in the banking, lending, and digital payments space.

The fusion of HDFC Bank’s network, products and credit appraisal capabilities and Patym’s technological platform will accelerate digital transformation in semi-urban and rural India while bringing more people into formal banking channels.

Paytm is India’s largest payments platform* with 333 million users and 21 million merchants onboard (1).

With over 50 million card customers (both credit and debit cards) HDFC Bank is a strong player in the payments ecosystem with leadership in both credit card issuing and acquiring businesses. It has a footprint of over two million merchant acceptance points and 48 per cent business market share on merchant acquiring volume. It remains the number one credit card issuer in the country with a spend share of over 27 per cent.

Through this partnership, Paytm & HDFC Bank will build comprehensive solutions across Payment Gateway, POS Machines and Credit Products including Paytm Postpaid which is Buy Now Pay Later (BNPL) solution, Eazy EMI and Flexi Pay, and more.

The first leg of the partnership will include Payment Gateway and POS Solutions for Indian merchant partners.

The partnership between Paytm and HDFC Bank will aim to empower the new businesses, which have recently ventured online, and enable them to scale up further.

Paytm and HDFC Bank are coming together for two broad POS offerings:  HDFC Bank will drive merchant partnerships across India, to whom Paytm will offer its existing range of Android POS devices. Through the partnership, HDFC Bank’s salespersons will start selling Paytm’s payment solutions in the market. HDFC Bank will be the payment partner, while Paytm will be the distribution and software partner.

Paytm and HDFC Bank will jointly launch a co-branded POS product in the retail segment, which Paytm will have the option to offer it to its own customer base.

Talking about the partnership, Bhavesh Gupta, CEO, Paytm Lending said, “We are extremely delighted to partner with HDFC Bank, which has been one of the leaders in the retail lending space in our country for the last two decades. Together we aim to provide innovative digital lending & payment solutions for consumers and merchants alike. This partnership will further strengthen financial services ecosystem by bringing together our technology and digital solutions and HDFC Bank’s retail and credit prowess.”

Renu Satti, COO, Offline Payments, commenting on the partnership said, “Paytm’s reach in the offline & online merchant space and HDFC Bank’s retail influence, will aim for dynamic growth in the payments space. Paytm has a history of launching innovative products that have made way for the adoption of retail payments among various merchant partners. This partnership aims to bring innovative products focusing on affordability.”

Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank said, “As India’s largest issuing and acquiring bank, we have always endeavoured to personalise our offerings to customers-consumers, businesses and corporate houses. Through this partnership, we will also be jointly delivering enhanced SmartHub solutions to the market. We believe that this is the start of a great partnership and the cumulative strength of both HDFC Bank and Paytm will help us strengthen our respective leadership positions”.

HDFC Bank SmartHub solutions is an integrated platform offering merchants a one-stop solution shop for all their business needs-payments, banking, lending and segment-specific business solutions.

Business World, News

HDFC Bank creates Digital and Enterprise factories to enhance Digital Banking experience

Jun 23, 2021 by Rekha Nair 0 Comments #Consumer Finance, #Digital Banking & IT, #Group Head – Payments, #HDFC Bank, #Mr. Parag Rao

HDFC Bank creates Digital and Enterprise factories to enhance Digital Banking experienceMumbai: HDFC Bank today announced that it is setting 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.’’