Kotak bank to go ‘phygital’ way

Vijay C Roy

Tribune News Service

Chandigarh, November 21

After bringing down the cost of acquisition and launching 811 — a full service digital savings account — Kotak Mahindra Bank is adopting a new strategy called “phygital” to reach out to new customers. “Phygital” will be a combination of physical branches and digital banking by strengthening the digital infrastructure.

Virat Diwanji, Senior EVP & Head – Branch Banking and Acquisition, Kotak Mahindra Bank, said, “The need of the hour is to go phygital, as 60-65% of our customers use either net banking or mobile banking. Under the new strategy, we strengthening our physical branches network besides improving digital banking infrastructure. We plan to add 27 physical branches, 4-5 digital branches (24x7) and around 8-10 e-lobby (24x7) by the end of this fiscal. We are also implementing a hub and spoke model at locations where we are already present.”

On being asked about the 811-service, he said, “It has revolutionised the process of opening a bank account. We are witnessing 811 accounts being opened throughout the day. We have got response from cities such as Yamunanagar and Rewari where we don’t have any physical branches. This service is helping us in mapping up the area where there is an immense potential but we don’t have physical branches.”

811 is a full-service digital savings account that customers with Aadhaar and PAN number can open from anywhere any time online in less than five minutes. This has helped the bank to take its deposit base to 10.5 million from 8 million within the first six months of the launch.

Meanwhile, Kotak Mahindra Bank continues to offer 6% interest on savings account where the balance is above Rs 1 lakh and up to Rs 1 crore.