Standard Charted Bank – Stanchart has announced the closure of two more branches effective 30 September, 2020. This is the second round of branch closures after the multinational bank had done a similar exercise in January 2020.
The branches earmarked for shutting down are Solwezi branch, located at the capital of now copper rich North-Western province and Mazabuka branch, located at one of the leading Agro zones of Zambia and home to Zambia Sugar.
The Bank had in January this year closed its Mongu branch, its only branch in Western Province, shut down Kasama branch, which was also its only Northern province based branch, as well as shut two Copperbelt province based branches at Luanshya and Chilibombwe.
Stanchart Head of Corporate Affairs Christine Matambo told the Zambian Business Times – ZBT exclusively that the Banks’s branch or physical transaction traffic is decreasing while it’s digital transactions have been expanding, hence the bank has been evaluating how to re-format current distribution channels to deliver the most efficient services to its clients.
She told ZBT that as the world goes digital, physical business is decreasing hence the need to leverage the growth of digital banking. We are currently investing more into enhancing the Banks digital, mobile and online infrastructure.
Traditional banking models of branches have come under severe pressure following the advent of mobile phone banking driven by the Telecoms industry. Digital financial services in Zambia has recorded significant growth with mobile money payments leading the charge.
According to the latest information from the Bank of Zambia, Mobile money payments posted an annual average growth of 126% in value from K2.07 billion processed in 2015 to K49.45 billion processed in 2019.
And when asked how Stanchart is dealing with competition from Mobile money offered by Airtel, MTN and Zamtel, Matambo explained that the Bank is not in competition with Mobile money service providers but rather have created a rapport to partner with mobile service providers.
“To grow our business further, we are also re-deploying our resources in places where clients want us and we continue to invest in technology. This technology is already delivering easy, convenient banking to our clients” She said.
She added that the Bank remains committed to the long-term interests of its staff and customers in Zambia, and continue to facilitate the development and growth of the economy given that the Bank recently announced a new investment of over US$40m into its new Head Office building in Lusaka.
