Context:
Neo banks (digital-only banks) and mid-sized banks are setting up Global Capability Centres (GCCs) in India. GCC expansion is the next big wave in India’s banking, financial services, and insurance (BFSI) sector. Market size of neo banks expected to grow from $19 billion in 2018 to $395 billion by 2026 (PwC).
Why Are Banks Setting Up GCCs in India?
Global Capability Centers (GCCs), also known as Global In-house Centers (GICs) or Captive Centers, are offshore or nearshore entities fully owned and operated by a parent company, providing a wide array of specialized services, ranging from IT and R&D to complex back-office functions.
- Cost advantages and access to top engineering talent.
- Lean workforce – Small banks operate with one-tenth or fewer employees than larger global banks.
- Resilience post-pandemic – High attrition (up to 70% at service providers) prompted banks to in-source operations.
- Technological advancements – GCCs focus on AI, cloud computing, blockchain, and digital banking.
Key Players Expanding in India
- US Banks: First Citizens Bank, PNC Financial, Fifth Third Bank.
- European Banks: Natixis, Credit Agricole, Santander (France), UniCredit (Italy).
- UK Banks: Revolut, Monzo.
Growth of BFSI GCCs in India
- 130 BFSI GCCs operating in India, employing 537,000+ people (EYWizmatic study).
- 22 GCCs operate with fewer than 500 employees, highlighting a tech-driven, agile approach.
- Top 10 banking GCCs employ 285,553 people.
- JP Morgan alone has 21,000 engineers working on AI, cloud computing, blockchain, and digital banking.
Future Outlook
- GCCs will continue to grow as banks look for cost savings, operational control, and tech innovation.
- Smaller, agile teams will play a significant global role in shaping digital banking.
- India will remain a strategic hub for BFSI technology and operations.
