HDFC which is a India’s second largest private sector lender and first bank having a MOJO which is a musical logo has launched the country’s first full-fledged digital banking service for the SME segment. Earlier DBS has launched the same kind of service with their Digibank. The service can be offered to all current more than 1,00,000 SME clients amounting around 7% market share mostly came from Lucknow, Bangalore, Chennai, Hyderabad, Gurgaon, Noida, Chandigarh, New Delhi, and Kolkata.
What is Digital Bank ?
The digital bank offers truely online banking to their clients in which they can bank for 24X7 with their entire suite of services instantly and on the device of their choice, be it a laptop, desktop, mobile or tablet.
With the Digital bank SMEs’ can focus on their business rather than availing banking services, hence no need to have to go to bank executing single transaction. The facility does away with the need to call RM or visit a branch, thereby saving a significant time and effort for the SME clients. This is after the piloting the solution for last last three months.
About Security of Digital Bank
As all transactions are executed online hence security is the major factor to trush SMEs’ to avail this service. For the same HDFC Bank ensured that there must be adequate security measures which must be built into the system, this is done with the 128 bit end- to- end encryption using a public key infrastructure (PKI).
“The transaction moves in a 128-bit encryption which originates from the PC that generates the transaction and goes into the bank’s system encryption end to end. We have ensured that there is a secured pipe. Also, a two-factor authentication has been created. The customer gets an OTP on his mobile phone and he uses it to authenticate himself beyond the password. There are certain checks built in so it can transact only from a particular machine. You can’t make transactions from any other IP address. The system is flexible enough to take in as many security checks as the client would be comfortable with. We’ve built security features both at the pipe level and at the feature level,”
Aseem Dhru, Group Head- Business Banking, HDFC Bank, told ETCIO.
What Can SME do with HDFC’s Digital Bank ?
With the complete online digital banking from HDFC Bank SME’s can perform following task.
- View all their credit lines
- View asset outstanding
- Know the maturity date of Letter of Credit
- Know maturity date of bank guarantee
- Pay and receive all money without using a cheque book.
- Upload all important documents to avail credit facilities like
- stock statements