Kotak Mahindra Bank to hire 500 engineers in tech push

Core Insights - Kotak Mahindra Bank Ltd. is recruiting 500 engineers to enhance its technology capabilities and long-term competitiveness [1] - The Chief Technology Officer aims to create a "technology company with a banking license" by targeting talent from large tech firms and competing banks [2] Technology Investment and Strategy - The bank's technology workforce exceeds 2,000, primarily sourced from major tech and financial firms [2] - Kotak's strategy combines talent from deep tech companies with domain expertise, likening it to a blend of ginger and cardamom in chai [3] - The Indian banking sector is increasing tech investments due to growth in deposits and credit activity, with larger banks adopting AI for customer service and fraud detection [3] Competitive Landscape - Kotak's technology push positions it against technologically advanced lenders like DBS Group Holdings and Macquarie Group [4] - A regulatory technology embargo was lifted, allowing Kotak to accelerate its tech initiatives [4] Operational Improvements - The bank has reworked its core banking systems and reduced reliance on external vendors, enhancing control over critical infrastructure [5] - Kotak has achieved over a year without unplanned outages in its core banking system, while transaction volumes have increased by 60% to 70% year-on-year [6] Future Hiring and Tech Spending - The bank plans to hire an additional 300 to 500 engineers in the next financial year starting April 1 [7] - Tech spending has risen to approximately 13% of operating expenses, up from around 10% two years ago, with a focus on automation to manage costs [8] AI Integration - AI is becoming central to Kotak's operations, with machine learning used for transaction monitoring and cybersecurity [9] - The bank anticipates that nearly all operations will be AI-infused within eight months, with hundreds of engineers already utilizing AI tools [9]