June, 2016
Issue No. 7
Retail Banking
  1. IDFC Bank launches #IDFCTwitterResume campaign

    IDFC Bank is now making applying for a new job as simple as sending out a tweet. The country's newest private sector lender has just rolled out a first-of-its-kind Twitter campaign, #IDFCTwitterResume, where a person can describe her professional achievements in 140 characters and secure a job. Through this campaign, the bank aims to position itself as a tech-savvy, youth-friendly employer and attract young talent for junior and mid-level openings. This is probably the first time in India that a company is encouraging job seekers to post their abridged resumes on its twitter handle, as a first point of contact for hiring. Job openings will be posted on LinkedIn, Twitter and Facebook and the campaign continued till May 24. Post this date, job seekers can continue to post resumes using the same hash tag.

  2. YES Bank partners Click&Pay for cashless transactions

    YES Bank has partnered with Click&Pay, a Hyderabad-based mobile payment solutions enterprise, to facilitate cashless, secure and flexible transactions for customers. As a part of this alliance, Click&Pay will issue YES Bank-sponsored mobile wallets and employ the bank’s immediate payment service (IMPS) platform. This, in turn, will help Click&Pay to process instant proximity transactions with merchants and also among retail customers. Last month, YES Bank signed a memorandum of understanding with Hyderabad start-up incubation center, T-Hub, to work with the latter's portfolio companies, including Click&Pay. This mobile payment solutions start-up will reach out to around 1 million users this year by issuing the YES Bank-sponsored mobile wallet.

  3. HDFC Bank plans to double its credit card base in 1 year

    HDFC Bank wants to accelerate its growth in the credit card segment and capture further market share by aiming to offer 0.4 million credit cards every month in another 12-15 months. The lender, according to Reserve Bank of India statistics, is the largest issuer of credit card in the country and currently offers around two lakh (0.2 million) cards per month. This means that the bank aims to almost double the number of cards that is issues per month. HDFC Bank’s closest competitor was ICICI Bank at 3.50 mn cards. SBI Cards, Citibank and Axis Bank made up the rest of the top-five list.

  4. HDFC Bank plans to open 500 branches this fiscal year

    HDFC Bank plans to open about 500 new branches this financial year as part of its consistent steps to expand footprint. About 60 per cent of new branches would be coming up in semi-urban and rural areas and the remaining in urban areas. Last fiscal, the bank opened 506 branches – leading the tally at 4,520 units at the end of March 2016. Of the 506 branches, 256 branches were opened in semi-urban and rural areas. The country’s second largest private sector lender also plans to raise Rs 50,000 crore through bonds over one year to fund business growth.

  5. SBI overtakes HDFC Bank as largest issuer of POS terminals

    The SBI has become the top merchant acquiring bank for POS terminals in the country with more than three lakh machines, as per the RBI latest data. SBI has acquired 302,119 merchants while HDFC Bank came in second with 283,274. Axis Bank came third with 263,951 while ICICI Bank came in fourth with 200,759 machines. In December 2015, HDFC Bank’s POS terminal count stood at 280,262 while SBI’s POS terminals stood at 270,307. The RBI noted that there is concentration in acquiring business with the top five acquirer banks accounting for nearly 81 per cent of the POS infrastructure and top 10 acquirers’ share of POS being above 90 per cent. An Ernst and Young report points out that the country has the lowest POS terminal penetration in the world. The report further adds that there are only 693 machines per million of India’s population, compared to similar emerging countries such as Brazil, which has 32,995 terminals per million people and China and Russia, each of which has around 4000 terminals per million people.

  6. ICICI Bank launches novel method for faster cheque clearance

    ICICI Bank has introduced a 'Positive Pay' feature, a fraud-detection tool, in its mobile banking application that allows customers to transfer images of the cheques they have issued to the bank. This allows for faster processing of the cheque as it alleviates fraud risk. Positive Pay is used as fraud detection tool by many banks across the world. The cheque-issuer sends information of the cheque number, payee, amount and date to the bank and the bank then corroborates the information with the cheque when it is received for clearing. This service is already used by corporates, who send statements on the cheques issued by them to the bank. In India, ICICI Bank is the first to deploy Positive Pay for individual account holders. Using the app to send the cheque image allows the bank to provide this service without adding to its costs. The images, however, cannot replace cheques since RBI norms require that collecting banks obtain physical possession of the cheque.