If you run a SME (Small and Medium Enterprise), you know banking is a full fledged headache. SME owners have to try and grow faster, compete with bigger and deep pocketed rivals and also at the same time diligently grow through accounts, keep track of transactions, ask for more credit. The list goes on.
Being an SME, doing banking can be a stressful job. That's why digital offerings are a boon straight from heaven. The country's most valuable lender, HDFC Bank has launched India’s 1st first full-fledged digital banking service for small-and medium enterprises (SME).
HDFC Bank maintains that this product is not a market centric offering but a web enabled one. Customers can log in through their enet ID\password and gain access to a host of services. At a single click a customers can access all information on existing loans; apply for letters of credit\bank guarantees; submit bank statements, financials, insurance policies; and get offers as well as alerts of important dates.
Its different
What this allows is SME clients to access a complete suite of services instantly and round-the-clock on the device of their choice, be it a desktop, laptop, tablet or mobile. SME owners and top executives are always on the go. Meeting people, exploring opportunities, looking after goods that are stuck or delayed. Yet, SME companies have a strong hierarchy. Banking transactions can get slowed when there are many people 'approving' them. In the physical world, this means sending physical copies of documents. Then making sure the bank has got them. Follow-ups. It can be quite time-taxing as well.
What HDFC Bank's digital SME bank facility does is remove the hassles to a large extent. So, you dont need to call relationship manager or visit a branch. Result: you save considerable time and effort.
The SME bank initiative in the second leg of the ‘Bank AapkiMutthi Mein’ campaign that was launched for tHDFC Bank’s retail customers in December 2014 at Varanasi. With this, HDFC Bank now brings the benefits of digitisation to its corporate clients, starting with SMEs.
The importance of SMEs is well-known. 3.6 crore SME units contribute about 8 per cent to India’s GDP. If manufacturing has to grow and fast, SMEs need be helped. SME contribution to India’s manufacturing output is 45 per cent. They also earn a lot of forex since they account for 40 per cent of India’s exports.
What SMEs get
With digital SME banking, HDFC Bank is attempting to revolutionize banking just as ATMs, internet banking did. For existing clients, this will be a total Digital banking experience where the control of the Bank account resides in their hands. Now, Digital will bring SME banking to same stature retail banking is in terms of extra convenience. HDFC Bank, like many others, offers Current Accounts, Merchant Services, Cash Management Services, Working Capital, Business Loans, Trade Finance Solutions and Export Services to SMEs. But, digital will change the game, probably forever.
Aseem Dhru, Group Head - Business Banking, HDFC Bank Ltd, says digital empowerment is a game changer for an SME. A business banking customer will be able to apply for working capital finance, access information, place requests and do multiple other transactions without having to contact a relationship manager. "This means that the turnaround time for many customer requests will come down to a few hours from a few days. What is more the customer is not constrained by banking hours and can access services through several platforms like a PC, Laptop, Tablet or a mobile," he added.
So, imagine you are SME owner. Now, you get:
1) One view of all your credit lines with the Bank and the asset outstanding. You can even know the maturity date of Letter of Credit, Bank Guarantees
2) A big relief. Pay and receive all your money without even using a cheque book. SMEs like business clients of HDFC Bank use ENet.
3) Get Letter of Credit, Bank Guarantee, Foreign currency outward remittances, Import bill under collection / LC done from your office
4) As many SME owners already know, documentation is a big headache. With Digital SME bank, All Important documents like Stock statements, Insurance, financials etc. can be uploaded with ease to the Bank for smooth continuation of credit facilities
5) HDFC Bank will also use analytics to send you offers which are relevant to the particular customer
6) SME clients will get Tickers and Alerts of renewal/expiry dates to facilitate SME’s in timely submissions.
What I really like about the service is the level of transparency. According to HDFC Bank, for each client initiated transaction request, a QR code is sent which can be saved and used to know the status of the request thus ensuring transparency.
7) Clients can ask for seasonal / additional limits for a sudden business requirement and based on the analytics, the money could be credited to their accounts almost instantly. If its actually instant, that will save a lot of cash problems for SMEs. Readers are requested to try this out and let me know if HDFC Bank walks the talk on the digital service delivery part.
Its clear that HDFC Bank like some smart lenders is wanting to automate and in a sense democratize banking. Resources can be used in a better way. With the Bank taking transactions online and relationships offline,relationship managers will continue to service the clients over and above this digital offering. This could be a transformative change in the SME customer experience.
Within a month, the Bank will extend the offering to new customers. They can apply online for loan facilities by uploading just three basic documents.The Bank will respond in about 24 hours with an in-principle decision, say HDFC Bank officials. Let me know how your experience was and what kind of problems, if any, you are encountering when dealing with HDFC Bank.
Till, the next time.
Being an SME, doing banking can be a stressful job. That's why digital offerings are a boon straight from heaven. The country's most valuable lender, HDFC Bank has launched India’s 1st first full-fledged digital banking service for small-and medium enterprises (SME).
HDFC Bank maintains that this product is not a market centric offering but a web enabled one. Customers can log in through their enet ID\password and gain access to a host of services. At a single click a customers can access all information on existing loans; apply for letters of credit\bank guarantees; submit bank statements, financials, insurance policies; and get offers as well as alerts of important dates.
Its different
What this allows is SME clients to access a complete suite of services instantly and round-the-clock on the device of their choice, be it a desktop, laptop, tablet or mobile. SME owners and top executives are always on the go. Meeting people, exploring opportunities, looking after goods that are stuck or delayed. Yet, SME companies have a strong hierarchy. Banking transactions can get slowed when there are many people 'approving' them. In the physical world, this means sending physical copies of documents. Then making sure the bank has got them. Follow-ups. It can be quite time-taxing as well.
What HDFC Bank's digital SME bank facility does is remove the hassles to a large extent. So, you dont need to call relationship manager or visit a branch. Result: you save considerable time and effort.
The SME bank initiative in the second leg of the ‘Bank AapkiMutthi Mein’ campaign that was launched for tHDFC Bank’s retail customers in December 2014 at Varanasi. With this, HDFC Bank now brings the benefits of digitisation to its corporate clients, starting with SMEs.
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| Journalists at Mumbai interacting with HDFC Bank officials at SME digital solution launch |
The importance of SMEs is well-known. 3.6 crore SME units contribute about 8 per cent to India’s GDP. If manufacturing has to grow and fast, SMEs need be helped. SME contribution to India’s manufacturing output is 45 per cent. They also earn a lot of forex since they account for 40 per cent of India’s exports.
What SMEs get
With digital SME banking, HDFC Bank is attempting to revolutionize banking just as ATMs, internet banking did. For existing clients, this will be a total Digital banking experience where the control of the Bank account resides in their hands. Now, Digital will bring SME banking to same stature retail banking is in terms of extra convenience. HDFC Bank, like many others, offers Current Accounts, Merchant Services, Cash Management Services, Working Capital, Business Loans, Trade Finance Solutions and Export Services to SMEs. But, digital will change the game, probably forever.
Aseem Dhru, Group Head - Business Banking, HDFC Bank Ltd, says digital empowerment is a game changer for an SME. A business banking customer will be able to apply for working capital finance, access information, place requests and do multiple other transactions without having to contact a relationship manager. "This means that the turnaround time for many customer requests will come down to a few hours from a few days. What is more the customer is not constrained by banking hours and can access services through several platforms like a PC, Laptop, Tablet or a mobile," he added.
 |
| Aseem Dhru, Group Head - Business Banking, HDFC Bank explaining how mobile app will help SMEs get 'more banking from less' |
So, imagine you are SME owner. Now, you get:
1) One view of all your credit lines with the Bank and the asset outstanding. You can even know the maturity date of Letter of Credit, Bank Guarantees
2) A big relief. Pay and receive all your money without even using a cheque book. SMEs like business clients of HDFC Bank use ENet.
3) Get Letter of Credit, Bank Guarantee, Foreign currency outward remittances, Import bill under collection / LC done from your office
4) As many SME owners already know, documentation is a big headache. With Digital SME bank, All Important documents like Stock statements, Insurance, financials etc. can be uploaded with ease to the Bank for smooth continuation of credit facilities
5) HDFC Bank will also use analytics to send you offers which are relevant to the particular customer
6) SME clients will get Tickers and Alerts of renewal/expiry dates to facilitate SME’s in timely submissions.
What I really like about the service is the level of transparency. According to HDFC Bank, for each client initiated transaction request, a QR code is sent which can be saved and used to know the status of the request thus ensuring transparency.
7) Clients can ask for seasonal / additional limits for a sudden business requirement and based on the analytics, the money could be credited to their accounts almost instantly. If its actually instant, that will save a lot of cash problems for SMEs. Readers are requested to try this out and let me know if HDFC Bank walks the talk on the digital service delivery part.
Its clear that HDFC Bank like some smart lenders is wanting to automate and in a sense democratize banking. Resources can be used in a better way. With the Bank taking transactions online and relationships offline,relationship managers will continue to service the clients over and above this digital offering. This could be a transformative change in the SME customer experience.
Within a month, the Bank will extend the offering to new customers. They can apply online for loan facilities by uploading just three basic documents.The Bank will respond in about 24 hours with an in-principle decision, say HDFC Bank officials. Let me know how your experience was and what kind of problems, if any, you are encountering when dealing with HDFC Bank.
Till, the next time.
Walmart Vriddhi's MSME training online is a comprehensive growth and training program that helps MSMEs modernize and scale their business for domestic and international markets.
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