While Developed Economies See Closure of Bank Branches, in Developing Economies, It's Less Dramatic

Digitization is forcing retail banks to undergo a transformation. The rapid increase of smartphones and tablets, the ease of using apps and social platforms, and the exponential growth of mobile Internet have all contributed to the mobile device being the most preferred communication channel for customers. Furthermore, though branches help banks in attracting new customers and cross-sell to existing ones, they also add to the bank’s financial costs. Therefore, it makes sense for a bank to work with a minimal number of branches to reduce costs and have profitable returns especially when the economy is weak. We have heard that banks such as Citi and JPMC have closed down branches across North America and other developed economies. However, the trend is not the same in developing economies such as India and China. There is no notic ...

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