Banks can weather the storm � Union
Isaac Pinielo | Wednesday July 8, 2015 15:08
Speaking to Mmegi Business, BOBEU general secretary, Lebogang Keabetswe said while they believe they can collectively weather the storm in the banking sector with the dedication of the employees, some banks are already looking for an easier way out.
“They find reduction of headcount as essentially the easiest variable cost to get rid of,” she said.
As at the end of the first quarter of the year, two banks, Standard Chartered and Capital Bank had already retrenched some of their employees.
Keabetswe stated that the reasons advanced by the banks were that they were repositioning themselves in the market while also automating their systems.
She noted that the issue of liquidity poses more threat than can be admitted, adding that as more companies continue to retrench and some close down, the banks’ loan books are threatened and the impact will be most felt by employees.
“The year started off on a bad note and it is likely to end the same way. There is unspoken uncertainty about our members (employees) future at the banks,” she said. However, the general secretary said they believe that with the strategies the banks have in place, they can turn things around with the support of BOBEU.
She explained that what is crucial is to fully engage employees on the direction they want to take and not do things high level. “The banks have solid strategies in place, it might just be an issue of implementation that is failing them,” she said.
According to Keabetswe, First National Bank Botswana (FNBB) has always prided itself in being the most innovative bank and a technological leader in the market. With the world almost fully digital, she said its service is just at the customers’ fingertips. “They have recently launched intelligence automated teller machines (ATM), which essentially offers all services. When you take a closer look at the bank, you will realise that they do not have as many branches for a bank of their magnitude,” she said.
Keabetswe explained that the reason FNBB does not have many branches is deliberate as branch banking is expensive to maintain and their focus is on taking banking to the comfort of people’s homes.
On the other hand, Keabetswe mentioned that Barclays Bank of Botswana is intensively diversifying their revenue streams. She said its concentration is no longer on the retail segment, but are fully taking on corporate banking as well.
“The bank has also intensified their uptake of channels, but the question is what then happens to branch personnel as less customer interaction is obviously going to be needed in the long haul?” she asked. Furthermore, she said Stanbic Bank Botswana and Capital Bank have changed their core banking systems to improve efficiency and streamline processes.
She said this leads to maximum customer experience and should leverage themselves well in the market.
Keabetswe stated that Standard Chartered with their recent retrenchment was to fully change gear to their focus areas.
Like Barclays, she said, their approach towards retail clients shifted with focus on the more affluent segment and acquiring of new businesses. “However, retrenchments might also be a strategy to attract new vibrant talent and get rid of old staff that is not bringing in any new changes,” she said.