Despite rapid expansion of Indian banks' distribution network, adoption rates of electronic channels remain low
Insufficient infrastructure has led to banks expanding their main distribution channels in which private sector and public banks pursue different growth strategies. March 28, 2011 | ResearchNumber of ATMs to Branches in Selected Countries between 2004-2011* Please click to view enlarged image By 2015, Asia Pacific will host almost 43.3% of total global ATM installations, up from the current 30%. China is poised to surpass US to become the biggest ATM market in the world, while India is set to become the fifth largest market. Due to rapid self-service adaptation in emerging markets in Asia Pacific, banks have grown their self-service network on average by 17.2% Compound Annual Growth Rate (CAGR) between 2004 and 2010. Apart from cost savings driving ATM growth in some countries, the huge increase of ATMs is due to the extremely low ATM to branch ratio. In China and India, there were 2.6 and 1.1 ATMs for every branch respectively in 2004. In 2010, the number increased to 7.8 and 2.7 respectively. In particular, banks in China and India have significantly decreased their reliance on branch banking, though Chinese banks have a markedly different approach compared to their Indian peers. Despite the fact that China has arguably one of the lowest cost in terms of human resources, there is nonetheless a higher level of automation compared to India. The current demand for recycling units is among the highest in Asia Pacific, though banks have not fully made the switch. Chinese banks are highly cost-conscious despite low labour costs, and this contri... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: India, Internet Banking, Retail BankingIndia,Internet Banking,retail, India,Internet Banking,Retail Banking, Keywords:ICICI Bank, HDFC Bank ICICI Bank, HDFC Bank
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