Neo banks and mid-sized banks are increasingly setting up Global Capability Centres (GCCs) in India, following the trend established by larger global banking institutions. This shift is seen as a major transformation in India’s banking, financial services, and insurance (BFSI) sector, opening up new opportunities for growth and innovation.
Neo Banks: A Key Player in Digital Transformation
Neo banks, which operate entirely online without physical branches, are playing a crucial role in this expansion. These digital-only banks either function independently or collaborate with traditional banks to offer innovative banking solutions. Their increasing presence is reshaping India’s financial landscape, making digital banking more accessible and efficient.
According to a PwC report, the neo-banking market is expected to reach $395 billion by 2026, a significant rise from $19 billion in 2018. This rapid growth reflects the increasing global adoption of digital banking and strengthens India’s position as a major hub for financial services innovation.
Rising Demand for Office Space by GCCs
As more neo banks and mid-sized financial institutions establish operations in India, the country’s importance in the global banking sector is expanding. A report by real estate consultancy ANAROCK highlights the increasing demand for office space due to the growth of GCCs.
Between 2023 and 2024, GCCs leased 52.88 million square feet of office space across India’s top seven cities, now accounting for 37% of the total office space market.
Among these cities, Bengaluru leads with 24 million square feet leased, making up 46% of the total GCC leasing in the top cities. Hyderabad follows with 10 million square feet, representing 19% of total leasing by GCCs. Other major cities, including Chennai and Pune, are also witnessing strong demand for office space.
India’s Growing Role in Global Banking
With neo banks and mid-sized financial firms expanding their presence, India is emerging as a key player in the global financial services industry. The rapid adoption of digital banking, coupled with increased investment in GCCs, is set to shape the future of India’s BFSI sector, making it a preferred destination for banking and financial services operations.
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