HDFC Bank is targeting a ten-time increase in the number of small merchants it serves to 20 million in the next three years. The bank started targeting merchants about 18 months ago with solutions on accepting payments, providing value-added services like creating a simple website for them, taking care of their inventory and lending based on cash flows, through a single app.
The merchant relationships accrue in fees as the services are charged, in interest income for the lending and also in low-cost current and saving account (Casa) deposits. Having a bigger number of merchants will help the bank’s analytics engines gather more intelligence and deploy suitable solutions.
HDFC Bank is one of India’s premier banks providing a wide range of financial products and services using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking.