HDFC Bank All Set To Unleash After Govt Ban Ends In July; Will Add New Credit Card Users, Improve Digital Banking
Private sector lender HDFC Bank which has the largest credit card customer base with 1.49 crore outstanding credit cards as on April 30, 2021 is under an embargo by the Reserve Bank of India for credit card acquisitions and digital launches, is hoping to return with a “bang” and regain its incremental market share in cards.
“We have used the last six month period since December to introspect, reinvigorate and re-engineer for the future. We will use tech and digital to help us continue being dominant in the space and will get back to the market with a bang. We have the entire system ready and charged up,” said Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking and IT, HDFC Bank.
Hdfc Under An Embargo
He expressed hope that the embargo on the bank would be lifted by the RBI soon and said the lender has been in continuous dialogue with the regulator.
“We have very aggressive plans to get back to the market with a big bang. You will see a significant correction in the incremental market share,” Rao told reporters at a virtual press conference.
Laying out future plans for when the embargo will be lifted, he said the bank has a much more wholesome strategy.
“It is not only to regain our (credit cards) number and value market share but also to forge new partnerships, build more scale, introduce newer products and services and continue on our journey of being the dominant payments bank player in the space,” he said.
“Our growth on the liability and asset side has continued. We have acquired a significant number on the liability and asset side. Our strategy of 75 per cent to 80 per cent internal customer for the card base still continues. We have a large database of customers who have one relationship with the bank. We have pre-approved them, we have primed our channels and have set milestones,” he said.
HDFC Bank – The Largest Credit Card Customer Base
According to RBI data, following the embargo on HDFC Bank, lenders such as ICICI Bank and State Bank of India have experienced a dramatic increase in credit card customer acquisition.
As of April 30, 2021, HDFC Bank had the largest credit card client base, with 1.49 crore credit cards.
In the interim, HDFC Bank has been working with its existing card customers and engaging them in deeper relationships.
“We saw very good results by refocussing on our customer base. We have a far more engaged portfolio, significant increase in activation,” he said, adding that the lender has also broadened the skills of its sales force and reskilled it.