HDFC Bank, which has emerged as the most valuable lender on the back of its strong retail book, is now throwing its weight behind automated loan processing to consolidate its position in the personal loans segment. The bank is now using its ATM network to grab new customers, including those of other banks who happen to use the bank’s ATMs.
The strategy follows a recent dispensation where the RBI allowed banks to extend all branch service via ATMs. HDFC Bank’s analytics and credit scoring engine has already been engaged in automating the credit appraisal and disbursement process for its own customers. Close to 15% of its new personal loans are now sanctioned and disbursed by the bank’s computer systems online without any human intervention.