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.
"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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By GlobalData