Citigroup (C) Shifts Focus To Digital Banking In India
Zacks Investment Research | Sep 28, 2016 07:20AM ET
Citigroup Inc. (NYSE:C) is planning to close nearly 10% of its branches in India, to expand digital banking, as per a Bloomberg report. This move is in response to customers largely switching to the bank’s digital banking platform to carry out their transactions, the source quoted people familiar with the matter.
The bank may shut down around 5 out of 44 branches nationwide, to focus on larger cities as well as wealthier clients. Further, the affected employees will be redeployed by Citigroup.
Citigroup’s consumer banking business manager in India – Kartik Kaushik – stated that nearly 97.5% of the bank’s transactions in India are currently conducted through digital platforms, compared to 75% three years ago. He further added that the bank will be largely focusing on locations with potentially high growth rate. Kaushik, however, declined to comment on the branch closures.
During second-quarter 2016, the bank reported a 13% year-over-year decline in consumer banking branches in Asia, bringing down the count to 461. Notably, Citigroup is one of the largest foreign banks operating in India.
Citigroup is focusing on digital banking to curtail costs and expand its customer base, besides improving profitability.
In Feb 2016, the bank announced its plan to sell its Consumer Banking operations in Brazil, Argentina and Colombia. Also, in Apr 2016, the bank downsized its presence in China to grow via its digital platform.
Additionally, the move is in line with other global players like HSBC Holdings plc (NYSE:C) . In May 2016, HSBC declared its plan to shut down nearly half of its branches in India, to focus on digital banking, aiming to expand its consumer business in the South Asian nation. (Read more: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.