Mizuho Financial Group, Japan’s third largest financial services company, has launched its Global Business Center in Chennai, Tamil Nadu, to boost its IT and banking operations. The center, which currently employs 250 staff members, is planned to expand to 1,000 employees by 2025.
Why Chennai?
Chennai is one of the leading destinations for global conglomerates to set up their Global Capability Centres (GCCs), especially in the Banking, Financial Services, and Insurance (BFSI) sector. The city hosts major GCCs for prominent institutions like Standard Chartered, Bank of America, NatWest, Wells Fargo, Barclays, The World Bank, and Citi .
Chennai’s thriving ecosystem, enriched by a pool of talent with exceptional banking and IT skills, are some of the key factors for Mizuho to choose the city as its preferred destination for its Global Business Center. The city also offers safety, good infrastructure, and expansion of Chennai Metro to facilitate seamless operations .
What will the center do?
The Chennai center will play a pivotal role in conducting high-end IT/ITeS, encompassing Robotic Process Automation (RPA), Artificial Intelligence (AI), systems development, cybersecurity, and general banking operations. The center will cater to the entire global network of Mizuho group .
Dr Dharma Raja, Managing Director, Mizuho Global Services, India, said: “Our current focus is on rapidly expanding our business and enhancing our capabilities to cater to the entire global network of Mizuho group. Establishing our office in a conducive business environment such as Chennai significantly bolsters our pursuit of these objectives.”
V Vishnu, Managing Director and Chief Executive Officer of Guidance, the nodal agency instrumental in bringing investments into Tamil Nadu, said: “The Government has been actively pursuing investments in the GCC space, and it is definitely yielding good results thanks to key enablers such as quality talent and necessary infrastructure.”
The development is a milestone in Mizuho’s commitment to enhance its global capabilities, primarily focusing on banking and IT operations for Mizuho Bank and other entities within the group.
How does this affect the economy?
The establishment of Mizuho’s Global Business Center in Chennai is expected to have a positive impact on the economy of Tamil Nadu and India. The center will create quality jobs for skilled professionals in the IT and BFSI sectors. It will also contribute to the foreign direct investment (FDI) inflow into the country. According to a report by Nasscom, GCCs account for over 25% of India’s total FDI.
The center will also foster innovation and collaboration between Mizuho and other GCCs in Chennai. This will enhance the competitiveness and productivity of the BFSI industry in India. Moreover, the center will support Mizuho’s global operations and help it serve its customers better.