Kotak Mahindra Bank Embarks on Massive Tech Recruitment Drive
Kotak Mahindra Bank, one of India’s leading banking institutions, is set to employ up to 500 engineers to bolster its technology infrastructure, according to Bloomberg. This move comes as part of the bank’s ambitious strategy to evolve into a “technology company with a banking license”, as stated by Chief Technology Officer Bhavnish Lathia.
Amalgamating Tech and Banking Expertise
The bank’s existing tech workforce, which includes over 2,000 employees, comprises professionals who have previously worked at renowned companies like Alphabet, Apple, Goldman Sachs Group, and JPMorgan Chase. “Where we see a unique opportunity is in combining talent from deep tech companies with talent that brings deep domain expertise,” Lathia commented.
With this robust recruitment plan, the bank aims to bring on board another 300 to 500 engineers in the forthcoming financial year starting April 1.
Overcoming Past Tech Shortcomings
In 2024, Kotak Mahindra Bank faced a regulatory technology embargo due to identified shortcomings. However, the bank used this period to revamp its core banking systems, shifting much of its software development in-house. This strategic move decreased the bank’s reliance on external vendors while providing in-house engineers greater control over critical systems.
Following these changes, the bank has successfully recorded more than a year without any unplanned outages in its core banking system, despite a 60% to 70% growth in yearly transaction volume. The bank has also managed to reduce transaction processing times for customers using Kotak’s digital app from several seconds to under 500 milliseconds.
Investing in Technology Over Physical Expansion
Unlike some of its competitors, Kotak Mahindra Bank is investing more in technological advancements than physical branch expansion. This is reflected in the bank’s operating expenses, with technology now constituting around 13% of the total, a rise from approximately 10% two years ago. The bank aims to maintain cost stability while growing business volumes, with automation and scaling permitting more resources for further reinvestment in technological platforms.
Embracing AI Integration
Lathia also revealed that almost all operations will feature AI integration within eight months. He indicated that hundreds of engineers are already utilizing AI tools for code generation, and around 35,000 employees are working with AI tools daily.
Kotak Mahindra Bank’s technological push comes alongside its ambitious growth strategy. As reported by Bloomberg last month, the bank is among those submitting binding bids for Deutsche Bank’s retail and wealth management operations in India. In the previous year, the bank acquired a personal loan portfolio from Standard Chartered Bank valued at Rs33.3bn (then $385m).
With this massive tech push, Kotak Mahindra Bank is poised to redefine banking in India by merging deep tech expertise with robust financial knowledge. Source: Here.
