Standard Bank’s Montjane reveals more details on branch closures, job losses

Standard Bank has announced its decision to close 91 branches in South Africa by June this year, affecting approximately 1,200 jobs. The bank's move comes as part of its strategy to realign its retail and business banking delivery model to cater to the changing needs of customers in the digital age. Foneka Montjane, Chief Executive Personal & Business Banking South Africa at Standard Bank, shed light on the rationale behind the decision and the support measures being put in place for the impacted employees. During a CNBC Africa interview, Montjane explained that the significant acceleration of digital transactions, coupled with a decline in branch-based transactions, led the bank to reevaluate the role of branches. The completion of the co-banking transformation program allowed Standard Bank to focus on delivering digital solutions through its app, internet banking, and ATMs, leading to customers favoring these channels. Montjane emphasized the extensive consultation process with trade unions to address the reasons behind the branch closures and to devise a comprehensive plan for affected employees. The bank aims to provide generous exit packages, training opportunities for alternative industries, and emotional support for individuals and their families. While the decision impacts South Africa, Montjane clarified that it does not extend to other regions where Standard Bank operates across the continent. The focus remains on adapting to the current market dynamics and meeting customer preferences. One key aspect of the support program for affected employees is entrepreneurial training to equip them with skills for potential business ventures. Standard Bank also seeks to identify internal opportunities for some of the impacted staff to transition into different roles within the organization. In the midst of the branch closures, Montjane addressed the concerns raised by trade unions, highlighting the completion of consultations and the initiation of employee engagements. While acknowledging the challenging nature of the decision, the bank is committed to assisting employees through the transition. The banking sector continues to witness a shift towards digital transformation, prompting institutions like Standard Bank to adapt their operations and service delivery to meet the evolving demands of customers. With a focus on innovation and efficiency, Standard Bank's decision reflects a strategic move to position itself for long-term sustainability in a rapidly changing banking landscape.