Banking on Big Data: HDFC Bank

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HDFC Bank looked at Big Data analytics as a tool to generate more revenue back in 2004 to get valuable insights on customers and markets – important information from a lender’s perspective.

“Back in 2004, we set up a basic backbone for analytics in terms of an enterprise data warehouse in the bank—we were one of the early ones to set up the data warehouse. And the driver for that was can we track the differentiation to be given to customers based on their relationship value with HDFC Bank,” said Munish Mittal, senior executive vice-president of IT at HDFC Bank.

Use of Analytics has helped HDFC bank in the following areas:

-Analytics helps to track if the customer is regularly banking or is just a salary account, i.e his financial habits. We wanted to address the question of how to become the primary bank for these customers.

-“Using analytics, we offered services such as Net banking to customers to make it more convenient, as they didn’t have to repeatedly visit branches, didn’t have to make a call or go to ATMs multiple times,” said Mittal.

-Analytics gives the bank, insights into personal habits of the customers. It allowed promoting offers accordingly. “Can I put my retail assets into it? Does he have a two-wheeler already? Does he have an auto loan already? Does he have a personal loan already? To be able to differentiate the customer and cross-sell relevant offers, we put analytics into play. We wanted to become the one-stop shop for the customer—he uses our debit card, but does he also use a credit card? At that point, we decided to put an analytics engine on top of our data warehouse and we brought in analytical tools like Saas (software as a service),” Mittal said.

-Using analytics, HDFC bank is also able to keep track of credit histories of customers and is able hand out loans accordingly.

“The value of analytics is very easy to determine—we use it as a metric to determine the number of instances where we have been able to prevent a fraud. Our NPA (non-performing asset) index is a true measure,” said Mittal.

Ivy Conducts Big Data Hadoop training in Bangalore, New Delhi and Kolkata as classroom sessions and live online classes for the rest of the locations. Ivy’s flagship Business Analytics Certification programme has been very popular since its launch in 2008.

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