NATIONAL BUSINESS NEWS - Firstrand will cut jobs and close branches at its retaill-ending unit as customers switch to digital banking – and as Africa’s biggest lender by market value responds to an economy on the brink of a recession.
Almost 600 positions would be lost at First National Bank, but more than 500 staff at the company might be able to apply for other roles, Sasbo representative Vanessa Hattingh said.
Sasbo is a union which acts on behalf of more than 50% of FNB’s staff.
About 10% of the branches would be affected, with 40 closing and 31 more reducing staff, she said.
FNB said the process, which was started last month, would remove duplication and improve efficiency, as more clients used the internet and cellphones to transact and FNB increased the use of automation.
“No full-service branches are affected and FNB is continuing to extend its network of ATMs,” it said.
With South Africa struggling to reduce an unemployment rate of about 25%, the bank declined to say how many jobs might be lost.
PSG Wealth bank analyst Adrian Cloete said: “If a bank can’t grow its revenues at a decent level, it needs to look at getting cost efficiencies.
“The banks will try to reduce costs through natural attrition of employees and using smaller, new-format branches with lower rental costs. The operating environment has become very challenging,” Cloete said.
Hattingh and her colleague at Sasbo, Eugene Ebersohn – who represents union members at Standard Bank – said they were not aware of job-cut programmes at any other banks so far this year.
Almost 600 positions would be lost at First National Bank, but more than 500 staff at the company might be able to apply for other roles, Sasbo representative Vanessa Hattingh said.
Sasbo is a union which acts on behalf of more than 50% of FNB’s staff.
About 10% of the branches would be affected, with 40 closing and 31 more reducing staff, she said.
FNB said the process, which was started last month, would remove duplication and improve efficiency, as more clients used the internet and cellphones to transact and FNB increased the use of automation.
“No full-service branches are affected and FNB is continuing to extend its network of ATMs,” it said.
With South Africa struggling to reduce an unemployment rate of about 25%, the bank declined to say how many jobs might be lost.
PSG Wealth bank analyst Adrian Cloete said: “If a bank can’t grow its revenues at a decent level, it needs to look at getting cost efficiencies.
“The banks will try to reduce costs through natural attrition of employees and using smaller, new-format branches with lower rental costs. The operating environment has become very challenging,” Cloete said.
Hattingh and her colleague at Sasbo, Eugene Ebersohn – who represents union members at Standard Bank – said they were not aware of job-cut programmes at any other banks so far this year.
