Presence of physical branches enable capturing of localised marketplaces, unorganised sector, mom and pop stores etc. Size of branches is small and man-power is reduced. In some branches, branch manager is also doubling as relationship manager for ‘preferred’ set of customers whereas larger branches have dedicated relationship managers. There is still variation in level of engagement, at the very least in perception.
And, I presume if cost-benefit of opening branches reverses, they can be curtailed down to few large branches. This has been observed in securities and brokerage business arm of banks where adoption of technology increased sharply in past few years. (PS: Some elderly people still go to bank branches to apply for IPOs via physical mode).
Disclosure: Small tracking position. Contemplating HDFC Bank vs Index value proposition
Subscribe To Our Free Newsletter |