Neo Banks And Mid-Size Banks Drive Growth Of Global Competence Centers (GCCs) In India

Neo and mid-size banks in India are rapidly setting up global competence centers (GCCs), following the example of major global banking giants.

This trend marks a significant shift in India’s banking, financial services, and insurance (BFSI) sector, creating new opportunities within the industry.

According to a recent report, neo banks, which operate entirely online without physical branches, are at the forefront of this transformation.

These digital-only banks are either functioning independently or partnering with traditional banks to offer innovative banking services.

Their contribution to the growth of GCCs in India highlights their increasing role in reshaping the global banking landscape.

Rapid Growth In Neo-Banking Market

The neo-banking market is experiencing rapid growth, with experts projecting it will reach a value of $395 billion by 2026, up from $19 billion in 2018.

This growth is fueled by the global rise in digital banking adoption and India’s potential to become a hub for banking innovation and services.

According to PwC’s latest report, this surge reflects the increasing demand for digital banking solutions and positions India as a key player in the global banking sector.

India’s Growing Importance In The Global Banking Landscape

As neo banks and mid-sized financial institutions continue to establish their operations in India, the country’s role in the global banking ecosystem is becoming even more crucial.

Alongside this shift, India is witnessing a growing presence of GCCs. These centers have leased over 52.88 million square feet of office space in India’s top cities over the past two years (2023-2024), according to a report by real estate consultancy Anarock.

GCCs Transform Office Space Market In India

The presence of GCCs in India is now a significant part of the office space market, accounting for 37% of the total office space leased in the country’s top seven cities.

Cities like Bengaluru, Hyderabad, Chennai, and Pune are seeing a surge in demand for office space from these centers.

Bengaluru, in particular, has emerged as the leading city, with 24 million square feet of office space leased, representing 46% of the total leased space in the top seven cities.

Following Bengaluru, Hyderabad has also witnessed significant growth in GCC-related office space leasing.

Over 10 million square feet of office space has been leased in the city, accounting for 19% of the total space leased by GCCs across the top seven cities.

This trend indicates a growing demand for strategic locations in India to house global banking operations and technological innovation hubs.

This shift signals new opportunities for India’s banking, financial services, and insurance sectors, positioning the nation as an emerging global leader in the digital banking revolution.

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