Cost-Cutting Measures Lead to Reduced Branches for Savings Banks, Insurers, and Credit Card Companies
As financial institutions face declining performance, savings banks, insurance companies, and credit card companies are accelerating the closure of physical branches. This trend is driven by digital transformation and adverse economic conditions. Despite the lower reliance on branches by credit card and insurance consumers, these entities are reducing their physical presence to enhance channel efficiency and manage costs. Savings Banks Reduce Branches Amid Adverse Conditions Savings banks, a key player in the retail finance sector, have been rapidly closing branches. This is largely due to the irreversible trend towards digitalization and the deteriorating business environment. In the first half of this year, 13 savings bank branches were shut down. Notable closures include branches of SBI Savings Bank, JT Friendly Savings Bank, Shinhan Savings Bank, Pepper Savings Bank, and others. The number of savings bank branches has consistently decreased from 312 in 2018 to 276 in 2023, a 30% re...