The latest development comes as Zimbabwe’s entire banking
sector has been streamlining its workforce over the past two years following
huge investments in technology, as well as in response to the negative effects
of the Covid-19 pandemic on the sector.
In a communication to staff that has been seen by this
publication, the bank’s chief executive officer, Mr Courage Mashavave, said the
reduction in the number of employees followed the deployment of the bank’s new
core banking system and its on-going digital transformation, which had
optimised the bank’s operational processes and rendered some roles redundant.
“Following the successful deployment of the new core
banking system, the bank has done an assessment of the impact of the system
upgrade on operational efficiency and aligning organisational structures to the
strategic vision of the organisation.
“The digital transformation brought about by the system
upgrade has, therefore, streamlined a lot of processes and optimised the
organisational structure.
“Regrettably, as part of the restructuring programme, the
bank will be forced to retrench redundant roles,” Mr Mashavave said, adding
that the process would allow the bank to align with “industry staffing
benchmarks”.
At least about 700 people are in the employ of Steward
Bank. Steward Bank, EcoCash Holdings Zimbabwe Limited’s banking unit, in April
last year completed a multi-million-dollar core banking system upgrade from R11
to R19 and in the process modernised its supporting infrastructure to create capacity
for growth and enhance operational efficiencies “by streamlining and automating
processes to improve customer experience,” according to Mr Mashavave.
“The bank will walk this entire journey with staff, in
liaison with the works council (workers and management committees) and
respective stakeholders, to ensure that there is clarity and transparency in
the process, and that the potential impact of the change on affected staff is
mitigated as much as possible,” Mr Mashavave said.
Over the past few months the banking industry in Zimbabwe
has seen several banks, such as CBZ, Stanbic and Standard Chartered, among
others, implementing similar staff rationalisation and restructuring exercises,
including staff reductions, branch optimisations and an increased reliance on
digital capabilities. In March last year, Stanbic Bank told its employees that
while the bank’s retrenchment process was regrettable, “it has become very
necessary”.
“It has become common cause at the bank that digitisation
was one of the bank’s key focus areas that we implemented in order to give the
bank a competitive edge in addition to achievement of objectives related to
client centricity and interrogation,” Stanbic said at the time.
“The bank’s continued drive to digitalise the business
since 2014 has resulted in over 95 percent of its transactions going through
our digital platforms as well as a change in customer behaviours as they
interact with the bank through its various digital channels.
This digitisation effort has significantly improved
efficiencies and has afforded clients opportunities to engage in banking
activities at their convenience,” the bank said.
CBZ Holdings CEO, Blessing Mudavanhu, whose bank recently
went through a business reorganisation, including staff rationalisation, said
at the time the group’s operations and the manner in which it serves its
customers and clients had changed significantly as a result of digital
platforms and automation.
“The group is undertaking a comprehensive review and
reorganisation of its structures and business operating model in line with
changes in the corporate landscapes and the way we do business,” CBZ said in
letters sent out to affected staff in September last year.
“Owing to the nature and purpose of the review and
reorganisation of structures and business operating model, the group can no
longer retain your service as a permanent employee or as a shift or short term
employee,” the bank wrote to affected staff.
More than 500 employees have lost their jobs in Zimbabwe’s
financial services sector between 2020 and 2021, and indications are that more
job losses could be looming in the country’s banking sector, as the industry
intensifies its transition to digital banking platforms. Herald
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