Mass Job Loss Looms as Standard Chartered Bank is Set to Shut Down Half its Branches in Nigeria

Mass Job Loss Looms as Standard Chartered Bank is Set to Shut Down Half its Branches in Nigeria

  • Nigerians who work in Standard Chartered Bank may yet again be laid off as the bank is reportedly shutting down some of branches in Nigeria
  • The bank will reduce its branches from 25 to 13 in a move to embrace digital banking and cut costs in the country
  • The traditional banking industry is facing stiff competition from digital banks which drive the fintech boom in Nigeria

Nigerians who work at the British and financial services group, Standard Chartered Bank may be laid off if reports that the bank is about to shutdown half of its branches in Nigeria is anything to go by.

Feelers from sources say that the bank is repositioning and pivoting towards digital banking which may not require it to operate many physical branches and staffers.

Standard Chartered Bank
Standard Chartered Bank Credit: Nairametrics
Source: UGC

A Bloomberg report says that the Nigerian subsidiary of the London-based bank has already shut down some of its branches in December 2021 and will go on to reduce it to just 13 from 25 branches it operates in Nigeria.

Read also

Chocked by excess bank charges, Nigerians turn to digital banks and wallets

Competition driving the change

The banking industry is facing heavy competition from Fintech companies, many of which employ cutting edge technology and drive digital banking in Nigeria.

PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!

The licensing of service payment banks by the Central Bank of Nigeria (CBN) operated majorly by telecoms companies is also posing as a great threat to traditional banking in Nigeria.

The Bloomberg report quotes insiders who craved anonymity and said that as part of the bank's strategy, the bank will be bolstering its mobile banking services and draft agents to reach new customers who will handle cash deposits and withdrawals across Nigeria.

Technology to the rescue

The sources also said that the new direction of the bank is to embrace digital banking in the face of stiff rivalry caused by the fintech boom in the country.

Read also

CBN promises to increase access to finance and credit for households, businesses in 2022

It is also in line with recent trends in the banking industry in Nigeria where the banks have resorted to cost-cutting measures by employing agents.

Top Savings platforms in Nigeria reports that the Nigerian financial industry landscape is laced with interesting options, most of which give users the ability to make a choice that allows them optimal use.

While some banks in Nigeria are paying higher interest to depositors for saving money with them, others are just there to make profits and post interesting figures at the end of their financial year.

The minimum interest rate approved by a regulatory agency like the Central Bank of Nigeria (CBN) is 1.5 per cent.


Online view pixel