After a recent ban by the Reserve Bank of India(RBI), Kotak Mahindra Bank Ltd. has announced to bolster its technological capabilities by recruiting approximately 400 engineers this year. This move comes as the bank’s efforts to enhance its technological infrastructure.
According to Milind Nagpur, the bank’s chief technology officer, Kotak has already onboarded more than 500 engineers in the last two years. These recruits were sourced from prominent firms such as Google, Amazon.com Inc., Paytm, and PhonePe Pvt. With the addition of 400 more engineers, Kotak aims to achieve a critical mass of talent signalling a gradual expansion thereafter.
The bank’s increased focus on technology is reflected in its augmented spending, with a surge of over 30% to INR 17 billion allocated for technology expenses in the fiscal year ending March 31. This expenditure accounted for approximately 10% of the bank’s operating expenses, as highlighted by Kotak’s Chief Executive Officer Ashok Vaswani.
Kotak’s technological advancements are poised to address concerns raised by the RBI, which recently imposed ban on the bank’s digital operations and issuance of new credit cards. Governance and risk management in technology systems have been singled out by the regulator as areas necessitating improvement.
Also Read: RBI Bars Kotak Mahindra From Issuing New Credit Cards And Online Customer Onboarding
In response to the regulatory scrutiny, Kotak plans to intensify its efforts, allocating additional resources and funds to expedite its technological transformation. Both Vaswani and Nangur underscore the bank’s commitment to bolstering its technological infrastructure to ensure compliance and mitigate risks.
The strategic focus on technology is further underscored by Kotak’s utilisation of artificial intelligence in areas such as fraud risk management and customer service enhancement. Kotak’s proactive approach to technological innovation highlights its commitment to maintaining competitiveness in the digital banking landscape, which includes the enhancement of customer chatbots for improved service delivery and sentiment analysis to expedite issue resolution.
Despite regulatory challenges, Kotak remains steadfast in its digitalisation efforts, with a significant portion of its transaction volume attributed to digital and non-branch channels.
