Mumbai: Deutsche Bank will focus more on the digital channel rather than the branch model to expand its business in the country, a senior official said.
Changes in RBI rules imposing geographical location restrictions on onboarding clients will help, said Kaushik Shaparia, Chairman of Deutsche Bank Group, India PTI.
“If the regulator would allow digital access beyond geographical restrictions, I am convinced we could achieve more.
“Currently, there are restrictions on where you can take clients, where your locations are, and the client has to have an office near one of your locations, etc.,” he said on the sidelines of a banking event here.
When asked about the branch strategy in the country, Shaparia quipped that “geography is history,” adding that the bank’s aim is to focus more on digital.
“Perhaps in the past it was crucial to have a robust branch strategy, but with digitalisation, geography is history. So I think our approach will be more digital,” he noted.
The bank currently has 17 branches in India and a branch in the GIFT IFSC. It also relies on the Indian workforce in the Global Capability Centres (GCCs) to provide a variety of additional innovations and work for its global operations. This makes India home to the largest number of employees outside of the headquarters in Germany, with over 20,000 professionals.
Shaparia said the GCCs in Mumbai, Jaipur, Pune and Bengaluru support the group’s operations in 48 countries through business engineering, modelling, quantitative analytics, comprehensive structuring and research to deliver innovative financial solutions.
It is observed that many foreign lenders are relying on the digital channel to expand their India business instead of expanding their branch presence. The regulator is also pushing for these lenders to operate as a wholly owned subsidiary rather than a branch model.
Meanwhile, as part of its social commitments under its corporate social responsibility, the credit institution has opened an evening learning center exclusively for lesbian, gay, bisexual, transgender and queer people to support the community in furthering their formal education.
The centre in Mumbai’s Sion will be followed by a similar facility in Ghatkopar and another learning centre for all sections of society will be set up in Pune, Shaparia said.
As part of its focus on diversity, equity and inclusion, the bank also has a clear approach to recruiting LGBTQIA+ employees, which includes participation in job fairs and raising awareness through campus engagement.
Published June 30, 2024, 12:37 p.m. IS
