The largest private sector lender HDFC Bank has started creating dedicated teams to speed up product innovation.
Executives from various business functions are selected to execute different projects and have already delivered three projects which are instant account opening, biometric know your customer (KYC), and fixed deposits renewal over a call.
Each team has up to 40 members who are drawn from across the hierarchy, and from various relevant business functions or departments to drive a project. Currently, there are nearly a dozen such teams. Instant account opening, biometric know your customer (KYC) and fixed deposit renewal over a call are the three different projects that are delivered, and there are 10 other projects which are already under the works.
The innovation projects earlier moved from one department to another which was a time-consuming process, however, the new approach which was adopted under the “one bank” vision combines the teams.
Innovative interventions are required in strategic areas like digital banking, customer relation management, instant loans, etc which are broadly outlined, and the teams sit together to conceptualize and execute the specifics. The decisions are made quicker because the teams sit together for a project and the ongoing COVID-19 pandemic has necessitated the need to look into more solutions.
The instant account opening feature has added three lakh customers despite the lockdown. The pandemic and lockdown have resulted in the need to immediately evaluate and execute innovative ideas. The pod team consists of executives from branch banking, information technology, and digital banking functions. HDFC Bank was able to launch the feature within 12 days from concept to execution.
Banks were categorized as an essential feature during the lockdown and were opened, however, customer footfall dropped, making it necessary to find out alternative means for banks. HDFC by “Instant Account app”, added 3 lakh, customers, by opening savings bank account instantly. The accounts were opened by using limited know your customer (KYC) provision and the customer had a year to update full details after opening the instant account. The app was launched in April, where there was a strict lockdown across the country.
According to RBI, individuals can open accounts with limited KYC, with the maximum balance in the account capped at 1 lakh rupees.
