How Cloud Tech Boosts Transaction Volumes for HDFC Securities

Sandeep Bhardwaj on Fortifying HDFC SKY App With Robust Cloud Security for Trading Sandhya Michu • March 19, 2024

HDFC Securities Limited - a subsidiary of HDFC Bank in India - has transitioned from traditional on-premises tech infrastructure to a modern cloud-based trading platform in a bid to disrupt securities trading. This shift has not only streamlined trading operations but also introduced advanced analytical tools and an integrated mobile trading app HDFC SKY.

With a legacy spanning 23 years, HDFC Securities has focused on providing customers from HDFC Bank with services across various asset classes, including equity, gold, debt and real estate. HDFC Securities offers products for a wide range of investments, such as stocks, derivatives, mutual funds, fixed deposits, NCDs, insurance, bonds and currency derivatives. In response to the increasingly dynamic customer needs, HDFC Securities has developed HDFC SKY - a dedicated broker application and a robust web trading platform.

Handling Dynamic Scalability With Cloud Technology

Securities trading is complex due to its fluctuating demand, with load spikes reaching as high as 50 times during opening and closing hours of trade, said Sandeep Bhardwaj, chief operating and digital officer at HDFC Securities. Compared with the traditional on-premises infrastructure models, cloud-based solutions provide a more robust and cost-effective alternative. With the adoption of cloud services, HDFC Securities has the flexibility to scale resources in real time according to demand, ensuring optimal performance and cost efficiency.

"We only pay for the resources we use, which significantly reduces operational costs compared to maintaining an on-premises data center,” Bhardwaj said.

HDFC SKY: A New Trading Platform

HDFC SKY is built as a DIY platform and primarily operates as a digital engagement model. The platform has been optimized from a user experience perspective, tailored to suit the primary target demographic, while maintaining feature parity and product offerings.

HDFC SKY is scalable and harnesses the power of cloud, microservices architecture and advanced data cache techniques. The platform leverages IaaS from Amazon Web Services and dynamically adjusts resources to manage peak trading volumes, ensuring optimal performance at all times. The microservices architecture helps HDFC SKY develop, deploy and manage each service independently, enhancing adaptability and resilience.

"We're embarking on a journey to scale HDFC SKY. It will help us onboard millions of new customers and efficiently handle thousands of transactions per second in the background, all while targeting a significant reduction in annual IT costs compared to similar on-premises applications," Bhardwaj said.

Adapting to Dynamic Financial Markets

Adaptability and responsiveness are important for financial services companies. HDFC Securities leverages analytical tools to track market trends and user behavior, facilitating swift adjustments to strategies. Direct input from users fuels a continuous improvement cycle, ensuring HDFC Securities remains finely attuned to the evolving needs of investors.

The company has also fortified its cybersecurity defense with robust data visibility measures and security protocols. Stringent encryption protocols and real-time monitoring mechanisms are in place to safeguard client data against potential threats.

The adoption of public cloud infrastructure, including containerization and serverless computing, has streamlined service delivery and helped significantly reduce costs. While the exploration of intelligent document processing pipelines, using AWS's generative AI solutions, would help enhance customer onboarding and service experiences, the company has made strides in positioning itself as an adaptive player in the financial services industry.