New bank branches are opening up in emerging markets despite the predicted death of branch banking and prevalent adoption of mobile and internet banking – as banks recognised the importance and effectiveness of a physical presence to the underbanked population.
Developing countries such as India, Russia and Brazil saw a firm increase in branch numbers over the year, while their developed counterparts in the United States and United Kingdom are rapidly closing their branches.
Axis Bank, one of India’s largest private-sector banks, is planning to open up as many as 400 new branches this financial year – in addition to the 400 branches which they have already opened last year – to serve their lower-income customers in remote areas and smaller cities in India.
During an interview with Quartz India, Rajiv Anand, Axis Bank’s Executive Director for retail banking, said that this is an effective strategy to build trust and acquire new customers in the cash-based country even when their digital transactions saw a 50% – 60% growth over the last two years.
Read the full article written by Nupur Anand published on Quartz India here.
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