Even as the BC model has consolidated by now, two caveats are in order. First, banks should not neglect the importance of brick and mortar branches, and in their financial inclusion plans, should maintain a fair ratio between brick and mortar branches and BCs.
However, housing investment is expected to continue declining moderately, and there seems to be no substantial change in firms’ stance to reduce personnel expenses. Hence, it may take some time for households’ income conditions to improve and, in turn, for private consumption to recover.