This archive report was first published on 23 August 2019.
Stanbic Bank has embarked on a digital transformation drive, which has led to the voluntary retirement of 88 staff members.
The move brings the bank's employee base to 1,000, following the submission of Voluntary Early Retirement (VER) applications between late July and August 9.
The bank's statement to media houses on Thursday highlighted the critical role of digital transformation in redesigning its operations, products, services, and channels.
According to the bank, the employee skills base and organisation structure are expected to transform to mirror the digital transformation strategy.
It remains unclear whether the lender will attempt to squeeze out more positions, given earlier media reports of a targeted 255 job cuts under VER.
Stanbic Bank's layoffs are part of an all-rounded banking sector efficiency quest, anchored on the thinning of operational costs as lenders tighten their belts to keep growth on a positive trajectory.
Commercial banks have linked the industry's obsession with cost-cutting initiatives to an ongoing deplorable operating environment, largely defined by the continued stay of the interest-rate cap regime.
According to the Kenya Bankers Association (KBA), banks have yielded an estimated 5,000 jobs under pent pressure on growing margins.
