Case Study

HDFC Transforms Customer Experience at the ATM

Watch the video to learn how HDFC India is efficiently migrating customers to lower-cost channels while providing a great customer experience.

I’m Sanjeev Patel. I look after the direct banking journals for the HDFC Bank in India. The HDFC Bank has about 80 million customers spread across 750 cities. We have an estimated 4,680 ATMs to serve these customers. We are in the process of putting in more because there is a never-ending demand for cash withdrawals and balance inquiries.

Key Challenges:
One of the key challenges that the bank, as well as I, face is ensuring that we are able to migrate customers to “lower-cost channels”. “Lower-cost channels” traditionally are the non-manned channels. They also offer customers 24×7 access.

About 75% of our active customer base comes to our ATM once a month, at least once a month, but on an average, three times a month. That’s an opportunity to discreetly discuss where ordinarily you would just have wasted.

CustomerPower – Interactive Communications
My name is Munish Mittal. My role is to provide payments technology solutions and shape the IT strategy for HDFC Bank. “CustomerPower” is a concept to achieve two objectives. One, to improve the experience of the customer on the ATM in terms of speed. And second, to open a channel for interactive communication to cross-sell and make targeted offers to the customer.

If you’re using “CustomerPower” for the first time, you would expect to see a message after you’ve withdrawn cash that says, “Do you want to save this as your favorite transaction?” Once you do, the next time you arrive at an ATM, and insert your card, you will be asked, “Do you want to perform your favorite transaction?” If you say, “Yes,” you are out in three clicks.

You might also expect to see a sales message from the bank in which we could actually be making the customer an offer. You could see a service message in which we’d say something as simple as, “This is your mobile number. Would you like to have it changed?”
But we do have messages for everybody, personalized and relevant, so to that extent, you keep the contact up with the customer and that’s really the killer benefit you get from “CustomerPower”. It’s working very well for us now.

HDFC Bank is a customer of ACI and uses ACI’s BASE24-atm and payment switching solutions. “CustomerPower,” in all, is a component from [NCR] to be loaded on ATM. There is a database at the back-end which is a common for the customer profile to be kept and his favorite transactions to be stored and offer to be made.
Integrate that with the device handler on BASE24 and we’re good to go. We’d have to customize the device handler on the BASE24 side but that was not a technical challenge. It was work that just needed to be done.
Especially in revenue terms, we’ve been able to make roughly about 300 million U.S. dollars equivalent of revenues from the solution so far. We’ve been highly commended by ACI as part of their awards program for the innovative launch of this project.
It’s making money on traditionally what were known as cost centers. Right, so from phone, Internet and the internal cost centers. We are actually making money on these through the sales and service of products.

Mumbai-based HDFC is one of India’s premier financial institutions, and a leading light in the country’s modernized, technologically-enabled banking industry. It is the 4th largest bank in the country, and the 2nd largest private bank. Its extensive ATM network complements a 1,725 strong branch network and together they create a presence for HDFC in 780 cities across India – and serve more than 19 million customers.


“4.6M card numbers registered; 40% faster ATM transaction times; $1.25 M in cross sale conversions”

Improving the Customer Experience at the ATM

On an average day, HDFC Bank’s ATMs are used for more than 300 transactions, and ATMs provide the most common and frequent point of interaction between the bank and its customers. This often results in customers lining up to use the ATM, and HDFC Bank wanted to speed up the time spent conducting transactions, as well as personalizing the ATM experience for account holders and giving the bank the chance to communicate directly with an individual.

Favorite Transaction Makes Going to the ATM Faster and More Fun

To solve these challenges, HDFC Bank launched the Customer Power initiative, which allows customers to save a Favorite Transaction, and easily and quickly conduct the same transaction in future if they want to. This greatly reduced the time spent at the ATM. It also enabled the bank to devise targeted messaging on specific products and services, and creates significant up-selling and cross-selling opportunities. The solution includes NCR APTRA Advance NDC software running on the ATMs as an integral component. All ATM transactions are routed through ACI’s electronic payment solution, with no impact on transaction times.

40% Faster Transaction Times

Within six months of launch more than 4.6 million card numbers had been registered for the ‘MyFavorite’ service, and transaction times are now 40 percent faster. At the same time, more than 4 million customers have been targeted for cross-sell messaging through HDFC Bank’s ATMs, which has generated more than US$ 1.25 million from the sales conversions booked to date.