HDFC Bank, the second largest private sector lender, has set up the country’s first ever commercial scale rural BPO at Tirupati in Andhra Pradesh by employing youth belonging to the weaker sections from nearby villages.
A Rajan, Country Head, Operations, HDFC Bank, said the BPO set up by the bank’s subsidiary, ADFC, commenced operations in July. The BPO is located at Tirupati. The bank opted for a semi-urban location as villages cannot support power supply, broadband connectivity and maintenance support required for software and hardware facilities.
The BPO employs more than 500 staff members and there are plans to ramp it up to over 1,500 by March next year, making it one of the largest rural BPOs in the banking sector.
Explaining the rationale behind setting up a rural BPO, Rajan said, “The bank is pioneering an initiative that has the potential to revolutionise rural India by taking job opportunities closer to the doorsteps through economically viable projects.”
The bank will be able to achieve this without compromising on customer service and economic viability.
Depending on the success of this initiative, there are plans to open similar rural BPOs in other states. Other banks, insurance companies and mutual funds could also consider financial outsourcing through rural BPOs, Rajan added.
According to Rajan, the cost of setting up a rural BPO is high, given the need for broadband connectivity to support advanced imaging technology in a remote location.