HDFC Bank to move to new digital bank IT platform

MUMBAI: HDFC Bank on Thursday unveiled its longer term digital banking plans. These involve building a new digital bank, rather than limit the solution to scaling up systems, and increased monitoring to address glitches. Earlier, HDFC Bank had said that it had drawn up short-, medium-, and long-term action plans to address digital banking outages for which it was pulled up by the RBI.
The bank is moving from traditional core banking to a new architecture that involves ‘hollowing out’ the core. This will enable a lot of functions to be done outside the core banking architecture. Operations too are being moved to the cloud so that things can be scaled up on demand during festivals and big sale days. The bank has added 50 people as part of its ‘enterprise factory’ and ‘digital factory’ initiatives that aim to address glitches in the present system and parallelly build a new system for the future.
HDFC Bank chief information officer Ramesh Lakshminarayanan said, “The core banking system was monolithic, they had one database where transactions took place. There was very little you could do to replicate them. Payments, balances, statements — everything sits on a monolithic architecture.”

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