Banks’ tech play gets stronger

The country’s top banks are increasingly focusing on technology investments to provide better customer experience and bring operational efficiencies, either by increasing the workforce with people from information technology (IT) backgrounds or through investments and partnerships with technology companies.

To put it in perspective, the IT expenditure of HDFC Bank is to the tune of 8-9% of its total expenses whereas ICICI Bank invests close to 8-9% of its total operating expenses.

The country’s largest bank, State Bank of India, has also been increasing its expenses on IT. Its IT spend grew exponentially by 49% year-on-year in the previous quarter.