Personalization at scale is key for modern banking: Ravi Santhanam, HDFC Bank

In an era where customer expectations are constantly evolving, the role of Chief Marketing Officers (CMOs) has become increasingly complex.

During the keynote session on the "Future of Direct-to-Consumer Banking," at the e4m BFSI Summit, Ravi Santhanam, Group Head, CMO & Head – Direct to Consumer Business, HDFC Bank shared his thoughts on the shifting dynamics in the CMO landscape and the unique challenges faced by the banking sector in adopting direct-to-consumer strategies. The session was moderated by Nawal Ahuja Co-Founder, Exchange4media.

When asked about the frequent turnover of CMOs in India, Santhanam attributed this trend to the nature of different industries. "It depends on the industry and the sector that you are in. If you look at the traditional sector—telecom or FMCG—there is a lot of opportunity for MNC CMOs to move around across countries. That’s one reason you see a lot of churn there.”

“But in Indian companies, most of the CMOs also get into commercial line businesses because that’s how these companies have been built. Marketing is the core of what it’s all about—whether it is FMCG, telecom or durables; it’s distribution-led sales. Marketing is primarily accountable for bringing the customer in."  

Santhanam explained that in sectors like banking, where direct-to-consumer interactions are paramount, the landscape is different. 

He noted, "In banks, where there is a huge amount of direct-to-consumer business—meaning there’s more direct sales happening, where there is a human being involved in the chain—you will see marketing has taken a kind of backseat because it’s more of a sales-driven organisation. But technology has helped marketing carve out its niche in these sectors." 

Discussing the evolution of direct-to-consumer banking, Santhanam highlighted the pivotal role of digitalisation.  

He elaborated on how HDFC Bank is leveraging digital channels to transform customer interaction. "We thought, if transactions have moved digitally, can origination be also moved digitally and be completely unassisted? Today, 95% of our transactions are digital, and more than 70% of our servicing happens digitally," he revealed. HDFC Bank is pioneering efforts to ensure that all customer journeys can start from any digital platform of their choice, whether it’s WhatsApp, mobile banking, or the internet. 

In the digital age, the risks of personalisation and data misuse are higher than ever. Santhanam was candid about the challenges. "The pitfall of personalisation is one mistake in terms of putting something wrong together and sending it to a consumer. O can actually make you lose trust in the bank. So, while personalisation has to be done at scale, how much guardrails you put in, how much you invest in technology, and what kind of checks you have in place are crucial." 

The executive detailed the stringent measures HDFC Bank has implemented to protect customer data. "We have a data governance officer, a data governance council, and clear guardrails for using the data we have," he noted. He also shared how the bank is ahead of the curve in complying with privacy regulations like GDPR, which has helped them maintain high standards in data privacy and governance.

In light of rising digital fraud, Santhanam shared HDFC Bank’s proactive approach. "We see a lot of cases where people lose money falling prey to scams—whether it’s the KYC scam, the Pan Update scam, or the electricity bill scam. Most victims are senior citizens. When we saw the number of frauds happening, we thought it is our best responsibility to go ahead and educate customers." 

"We created our own social media influencer, Vigil Aunty, who fights against fraud. This is the second year, and now we have a Vigil Army. I am very happy to say she has more than two and a half million followers on WhatsApp, receiving regular updates on the latest scams." 

On the evolution of marketing KPIs in the digital age, he said, "Fifteen years ago, we were focused on metrics like top box consideration and unaided awareness. These were crucial, especially when you’re managing a brand with about 9,000 retail outlets. You wouldn’t worry about awareness—everyone knew your brand. Today, our focus has completely shifted. It's not that we don't monitor or measure these metrics—we certainly do—but they’re no longer the primary KPIs. The most important questions we ask now are: Is it driving traffic to our digital properties? Is it increasing our ability to generate leads? And, crucially, is it helping with conversions?” 

Digital has given marketeers an unprecedented ability to measure. Every initiative they undertake is tied to clear business metrics. “When we draft our briefs, we start with the business objective, then move to the marketing objective, and finally the campaign objective. We never start with just the campaign. Each level has its own specific metrics, and ultimately, success is determined by whether we achieve those business objectives,” he added. 

Addressing the recent SEBI regulations on financial influencers, Santhanam offered his perspective. He said, "When brands use influencers, it is in the brand’s name that the message is going out. If anything wrong is being done by the influencer, the brands are held accountable, not the influencer alone.” 

He concluded that digital marketing in banking is now directly tied to business outcomes, with clear objectives and measurable success criteria.