How IDFC FIRST Bank blends core banking solutions with tech

As the financial landscape becomes disruptive and increasingly competitive, banks need to move away from traditional business models to a tech-based way of thinking and functioning. To cater to modern customers who prefer ‘on-demand’ financial services, banks must build efficient core banking solutions while ensuring robust security and generating growth. To achieve this, banks must embrace digital transformation.

IDFC FIRST Bank is one such player that prefers to call itself a ‘technology company with a banking license’. With an aim to keep banking as convenient, accessible, and risk-free as possible, we have combined the heritage of trust and security with new-age digital core banking solutions and processes.

A digital culture as a core banking solution
 

To enable digital transformation in the true sense of the word, IDFC FIRST Bank has adopted an agile working method. This allows the bank to stay on top of market trends, respond to changes, and effectively cater to customer demands. 

It has deployed cutting-edge bank technology and incorporated new-age tools and online processes to become a completely digital bank. The bank has also embraced collaborative systems to facilitate faster communication, teamwork, and transparency throughout the organisation.

On the people front, IDFC FIRST Bank continues to recruit the finest in-house and external talent to make the best of its open-source technology stack. Due to its digital innovations, employees are exposed to the latest developments in bank technology and programming. They also get the opportunity to upskill, reinvent themselves, and work in a dynamic universe.

Making crucial bank technology investments
 

To fully transform into a digital company, IDFC FIRST Bank has invested heavily in best-in-class technologies. The bank has built its own digital platforms instead of relying on off-the-shelf solutions. This has helped the bank offer customised core banking solutions to customers across the board and pivot to meet changing market demands quickly.

IDFC FIRST Bank is leveraging new-age technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to directly impact the end customer. It uses AI and ML to –

1. Analyse customer data
2. Provide hyper-personalised core banking solutions and products
3. Communicate effectively 
4. Strengthen customer relationships
5. Simplify banking across at every step

These technologies have helped IDFC FIRST Bank improve its mobile banking services, appraise customer credit history to manage risk better, and enable robust security to stay a step ahead of cybercriminals.

The bank has constantly leveraged technology to develop unique offerings, maintaining a steady pace of new products in the market that provide the maximum benefits to the customer.

Simplifying core banking solutions for the end customer
 

Putting the customer at the centre of its digital transformation journey, IDFC FIRST Bank has introduced 100% digital core banking solutions. This approach has enabled it to go completely paperless and bolstered the speed of execution. Customers can now experience best-in-class banking from the comfort of their homes.

Some of the ways in which the bank has done so are by offering –

1. End-to-end app-based core banking solutions
 

IDFC FIRST Bank customers can conduct all banking transactions, such as paying bills and transferring money via its mobile banking app, as well as leverage it to invest across asset classes, get access to loan products, shop online, and more.

2. Digital onboarding process
 

The account opening process has been made paperless and virtually instantaneous. All customers need to do is upload and verify their KYC details from the comfort of their homes. The swift onboarding process ensures the customer’s new IDFC Bank account is up and active in just a few hours.

3. Online loan and repayment facilitation
 

With the help of next-gen bank technology, IDFC FIRST Bank has made its suite of loan products accessible to all customers. Users can apply for the appropriate loan product as and when needed and make easy online repayments. The underwriting process is supplemented with analytics-enabled lending capabilities that better identify customers’ needs and enable the bank to create tailored financial products.

4. User-friendly digital interface
 

The bank’s website, netbanking capabilities and app provide a one-stop-shop for all banking needs of customers, as well as give them a bird’s eye view of their financial standing.

The IDFC FIRST Mobile Banking App is rated #1 in India and is ranked among the top 5 in world. It offers industry-first digital products such as:

• Add Money: Simplifies and speeds up adding funds to your account
• CreditPro Balance Transfer: An industry-first feature on credit card dues where customers can enjoy up to 105 interest-free days on every balance transfer.
• Ace Mutual Funds: An easy-to-use offering that empowers customers to invest in top-performing mutual funds.
• FIRSTmoney: Provides a flexible and competitive lending solution tailored to your needs.

Making core banking solutions inclusive
 

As of March 2024, the Reserve Bank of India's Financial Inclusion Index (FI-Index) reached 64.2, up from 60.1 in March 2023, indicating significant progress in financial inclusion across the country. Despite this progress, challenges remain. A 2024 report highlighted that 43% of unbanked adults in India cite distance to financial institutions as a barrier to account ownership. IDFC FIRST Bank is taking the lead in serving the unbanked segments of society by using cutting-edge bank technology to make services accessible to all.

The bank does not differentiate among customers. The ticket size of its customers, who are seeking loans of only up to ₹1 lakh, is treated as equal to those seeking amounts far higher. It also leverages multi-lingual support technology for the netbanking portal and mobile app to provide accurate and speedy information to customers in their preferred language. 

The personal loan and microloan offerings use bank technology that is on par with other specialised products. With intelligent and intuitive technology solutions to provide personalised banking services to vulnerable groups such as those with low incomes or living in rural areas, IDFC FIRST Bank aims to boost their economic growth and help them achieve financial security.

Conclusion
 

IDFC FIRST Bank and its digital-first approach have had a significant impact in a short period. As a ‘technology company with a banking license,’ it has ensured that customers can enjoy a seamless digital banking experience, employees are at the forefront of technological innovations, and the bank itself witnesses perennial growth.

In recognition of its impactful policies, IDFC FIRST Bank has been conferred several accolades, such as the ‘Best Wealth Management Provider’ and ‘Excellence in User Experience Website’ at the Digital CX Awards 2021. 

With advanced bank technology, IDFC FIRST Bank offers secure and efficient core banking solutions for all customers. Find out more about the bank’s innovative offerings and experience seamless digital banking today.