Citibank India has decided not to open any local banking subsidiary in India, as the benefits of having more branches are lesser than investing in e-banking and digitisation.
Citibank global retail banking head, Jonathan Larsen, said opening a local unit in India only to access a wider branch network is clearly less attractive and less relevant than ten years ago.
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"The branch is important in acquiring new clients but there is no transaction today that we do in a branch that we cannot do through another channel. As digital becomes more and more pervasive, the traditional branch role becomes less important.
"Industry is at a point where the traditional model of consumer banking is changing because of digitisation and globalisation. The future of our business is digital," Larsen added.
Around 95% of Citi’s transactions in India are made through channels other than branches and are driven by internet.
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