Innovative "two-in-a-box" strategy by Kotak Mahindra Bank to emulate "Amazon-like" service quality

As more millennials became its clients, the bank realized that the banking industry had undergone fundamental changes. As a result, there was a greater demand than ever for continual availability like Amazon, faultless transactions, and strong cybersecurity.

'Amazon-like' customer service would be offered by Kotak Mahindra Bank

Lender employs non-bankers and tech specialists to collaborate with bankers on the development of new goods and procedures.

Instead of being based in Mumbai, innovation and IT talent are drawn from Bangalore, Hyderabad, and Gurgaon.

The goal of Kotak Mahindra Bank's "two-in-a-box" transformation into a digital bank is to provide "Amazon-like" client care.

Under the direction of founder and director Uday Kotak, the big preparations got under way around 18 months ago. The new plan is supported by three pillars. The first is to provide an experience similar to Amazon. The second is to improve employee satisfaction by giving them the appropriate tools and methods. The third pillar places a focus on boosting productivity.

Before his term as MD & CEO was set to expire in December of this year, Uday Kotak left the Mumbai-based company four months early.

As more millennials became its clients, the bank realized that the banking industry had undergone fundamental changes. As a result, there was a greater demand than ever for continual availability like Amazon, faultless transactions, and strong cybersecurity.

At the moment, banks are divided into groups based on the types of products they provide, such as consumer goods, credit cards, mortgages, savings, and investments. However, the client has a horizontal experience with the bank. To operate more like a technology-centric and customer-first organization, the bank must undergo a fundamental change from a typical bank that employs IT as a support role. A cooperation approach is in use. The bank is bringing in tech-savvy employees who work with banking specialists.

The current banking teams are still in charge of the goods or subject knowledge. Consider how the IT and business teams currently collaborate, make decisions about strategy, and create products. All along the bank, these pairs, or "lighthouses," are emerging.

The Mumbai headquarters are no longer the hub of activity or innovation. Bangalore, Hyderabad, and Gurgaon, which are the IT talent clusters, are new locations. With lead engineers, the whole mobile banking team is based outside of Hyderabad. Bangalore is home to the analytics unit, which includes risk analytics. The new approach is to develop everything internally so that it is always accessible without any lag time or transaction failure. What the vendor completed in three weeks can now be completed in two days.

The areas receiving the most funding are IT skills, infrastructure, security, and data analytics. The bank wants the user experience of its banking app to be similar to that of well-known consumer applications like Zepto, Amazon, or Swiggy. These applications are renowned for their quick changes, dependability, and reliable performance. The biggest branch is now the bank's mobile app. Currently, it handles 98% of all transactions at our savings bank.

The bank is also enhancing the digital proficiency of staff members at all levels, including senior positions. They are changing personnel and updating expertise. The bank has changed its culture completely.