HSBC to shutter half of Indian branch network

HSBC is to shutter half of its branches in India as part of an ongoing global initiative to shift more business to digital channels.

  6 3 comments

HSBC to shutter half of Indian branch network

Editorial

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The UK-registered bank says it will close 24 of its 50 branches in the sub-continent and instead rely on online and mobile channels to expand its customer base.

The move reflects the digital lifestyles of the urban affluent consumers the bank is seeking to attract. HSBC says the branches to be closed account for less than 10% of its Indian customer base.

Up to twelve percent of the bank's branches globally are set to be abolished under a three-year restructuring plan announced last year.

Earlier this week, the bank moved to cut 850 IT jobs in its UK business, shifting the positions to cheaper offshore locations in India, China and Poland.

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Comments: (3)

Hitesh Thakkar

Hitesh Thakkar Technology Evangelist (Financial Technology) at SME - Fintech startups (APAC and Africa)

HSBC India's branch network nevver went beyond Urban cities. Customer segementation was in upper band of HNI never came to the lower customer segments apart from corporate banking.

It looks like branch network consolidation as almost 50% of branches will be shut assuming customers are served through Hub Spoke clusters. 

Good strategy but doubtful whether it conicides with Indian banking scenario.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

HSBC India's branch closure is not just because of shift to digital channels - it is shutting down its wealth management business altogether.

Hitesh Thakkar

Hitesh Thakkar Technology Evangelist (Financial Technology) at SME - Fintech startups (APAC and Africa)

Thanks Ketharaman for the sharing it.

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