HDFC Bank’s expenditure on technology comprises 5-7% of the lender’s overall expenses, Parag Rao, country head – payments, liability products, consumer finance and marketing, said.“A large portion of our investments have already been done and so we start capitalising on them,” he said, adding that 5-7% is a “good figure” for a stable organisation.
Around 50% of the bank’s technology spends are on core banking infrastructure, and the rest on employee cost. The Reserve Bank of India(RBI) recently pulled up private sector lender Kotak Mahindra Bank for lapses in IT systems. In 2020, the central bank had asked HDFC Bank to stop all launches of its upcoming digital business-generating activities and sourcing of new credit card customers after repeated outages at its data centre.
These curbs were removed in March 2022.On Tuesday, the bank launched ‘PIXEL’, an end-to-end mobile application-based customisable credit card. Customers can apply for the credit card through the PayZapp mobile application of the bank.Customers can choose among merchants, and earn a 5% cashback on categories like dining and entertainment, travel, fashion, electronics, and grocery. They also have a choice of online platforms, and can earn a 3% cashback on various platforms like Zomato, Myntra, BookMyShow.
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The card will be offered in two variants: PIXEL Play offers customisable benefits like choice of merchants, card colour, and billing date, while PIXEL GO is for beginners.The range is being launched on the Visa network, and will be accessible on additional networks in a couple of months. The bank has partnered with technology company Zeta as a technology provider for PIXEL.
