Top News

HDFC Bank set to allow customers to shop from its website soon

HDFC Bank is set to double up as an online shopping mart of sorts, selling grocery, clothes, shoes and other lifestyle products on its website, and getting its customers the best deals from e-tailers such as Snapdeal, Flipkart and Amazon, reports the Economic Times

HDFC Bank is set to double up as an online shopping mart of sorts, selling grocery, clothes, shoes and other lifestyle products on its website, and getting its customers the best deals from e-tailers such as Snapdeal, Flipkart and Amazon, reports the Economic Times

“We are a large retail and payment bank…about 30-40% of customer spends on e-commerce happens through our credit and debit cards,” Parag Rao, SVP and Business Head (card payment products and merchant acquiring services) at HDFC Bank told the Economic Times. “We are also a large acquirer; so, as a bank we thought while being the payment provider why don’t we give customers the option to shop for a host of products on the bank website and get offers and preferential treatment to increase customer stickiness.”

Rao said that the bank will not be selling goods directly as the rules do not permit it. “We have tied up with partners in travel, bill payment, grocery, hotel and shopping who have their sites anyway,” he added in the report.

The bank, based on customer feedback for the past one year, has been working to launch SmartBuy, which will provide a platform to its customers to get better discounts and facilities at one place. 

The central bank’s move to license niche payment banks has also led to increased focus among banks on digital banking.

Banks like ICICI Bank, HDFC Bank and Axis Bank want to ensure their transactions are not routed to any third-party website, for if a payment bank comes and these are routed to its website these banks may lose customers,” Parekh was quoted in the report as saying. 

“HDFC Bank is the largest acquirer (of customers) in the country and it cannot leave the acquisition space. Banks are just trying to pre-empt products that the payment banks would come up with,” Parekh told the Economic Times. 

According to the report, Aditya Puri, the managing director and chief executive officer of HDFC Bank, has been pushing the digital initiative since December 2014. Last year, the private sector lender appointed Nitin Chugh as the head of its digital banking initiative.

In a bid to replicating the best practices of global banks such as US-based Wells Fargo and Poland’s mBank, Chugh visited the mBank. He found out that the Polish bank rolls out loan products in 30 seconds. “When I came back we tried to improvise and launched a similar product where our customers can avail of personal loan in 20 seconds,” Chugh was quoted in the report as saying. 

The bank is also in the process of launching a new wallet facility on mobile phones that will allow customers to store their virtual credit and debit cards to perform transactions. 

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close