Introduction: The case “HDFC Bank’s Digital Transformational Journey” talks about the digital transformation journey of HDFC Bank and the different measures taken up by the bank under its digital transformation agenda. A brief history of the bank along with its digital offerings is discussed. The case discusses the digital initiatives taken up by the bank in 2015 with its ‘Go Digital’ initiative, and the mobile app for its customers. The case also highlights the actions taken by the bank to enhance its digital platform in 2017 and 2018.

HDFC Bank faced several technical issues during the period 2018 to 2021 and to resolve the issues it went in for an agenda of technology transformation in June 2021. The case dwells upon this agenda in detail and ends with the plans of HDFC Bank to expand its customer base and enhance its presence in the digital payments space.

In November 2021, HDFC Bank – the second largest bank in India – launched a micro-credit facility for street vendors under the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme and Common Service Centers (CSC) scheme. This facility enabled village-level entrepreneurs (VLEs) to avail of the benefit of the PM SVANidhi scheme on the Digital Sewa Portal. To avail of the facility, VLEs were required to link their mobile numbers with their Aadhar Cards and meet the eligibility criteria of the scheme. Smita Bhagat, Country head (CSC, E-commerce, Startups and Inclusive Banking Initiatives Group), HDFC Bank, said, “Through the launch of PM SVANidhi, at HDFC Bank we will be able to provide special micro-credit facility to small street vendors through our CSC VLEs for their holistic development and economic upliftment.”.

Learning Objectives

1. Understand the strategies used by a bank for digitalization.

2. Analyze the role played by technology in the digitalization of banks.

3. Examine the challenges faced by a bank while going in for digital transformation.