HDFC Bank allocates 5-7% of its total expenses to technology, with a significant portion invested in core banking infrastructure. Parag Rao, the country head of payments, liability products, consumer finance, and marketing, highlighted that this figure is deemed satisfactory for a stable organization. Around half of the bank’s technology spending is directed towards core banking infrastructure, while the remainder covers employee costs.
The Reserve Bank of India (RBI) has recently scrutinized private sector lender Kotak Mahindra Bank for IT system deficiencies. Previously, in 2020, HDFC Bank faced restrictions on launching new digital initiatives and acquiring credit card customers due to persistent outages at its data center. However, these restrictions were lifted in March 2022.
In a recent development, HDFC Bank introduced “PIXEL,” a mobile application-based customizable credit card. Customers can conveniently apply for this credit card through the bank’s PayZapp mobile application. The card offers attractive benefits, including a 5% cashback on various categories such as dining, entertainment, travel, fashion, electronics, and grocery shopping. Additionally, customers can enjoy a 3% cashback on selected online platforms like Zomato, Myntra, and BookMyShow.
The PIXEL credit card is available in two variants: PIXEL Play, which offers customizable benefits like merchant selection, card color, and billing date, and PIXEL GO, tailored for beginners. The card operates on the Visa network and will expand to additional networks in the coming months. HDFC Bank has partnered with technology firm Zeta as the technology provider for the PIXEL credit card.
