Letters: Digital banking

With reference to "Digital banking in a digital India" (March 28), HDFC Bank has already adopted the slogan, "We understand your world." The top management has adopted a disruption strategy. No wonder, despite the smaller size compared to the big players such as State Bank of India and ICICI Bank, HDFC Bank has been giving tough competition to its peers.

The "moment of truth" was the guiding factor in bank marketing. Even that concept has undergone a lot of changes with the customer acquiring power to choose the products and the bank. Big players committed a serious mistake of dictating terms and conditions to the customers, who are on their asset side of the balance sheet (read loans and advances). In today's changing world, the corporate customer and even the retail banking customer has been dictating interest rates. Even a one percentage difference in pricing lures the customer to the bank that offers attractive rates. Customers have been demanding customised "assets" products. They do not bother about products mentioned in promotion leaflets. As for liabilities, if the bank is silently happy with the customer who has kept a huge balance in savings accounts (despite low rates), that customer would change the bank itself the moment he comes to know of his ignorance. The better strategy for the bank would be to educate such customers, who will remain loyal.

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Having said this, I have noticed one big difference in HDFC Bank's approach to staff recruitment. Staffers at the branch levels lack knowledge, but those at the top and middle management levels are quite well-informed, quick decision makers and flexible in their approach.

K V Rao, Bengaluru

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