StanChart bets on unmanned branches to cut staff costs

Standard Chartered Bank will open two digital branches that offer unmanned banking services this year as the lender turns to technology to stem rising staff costs.

The units will not have tellers and customers will perform transactions such as deposits, telegraphic transfers, setting up of standing orders, cheque book requests and downloading account statement — which form the bulk of services which take users to branches.

Users will access the services via tablets, personal computers, touch screens mounted on walls, and intelligent ATMs.

The branches will be opened in Gigiri and along Thika Superhighway, adding to the unit housed at Nairobi’s Junction shopping mall which was unveiled on Thursday.

StanChart is mulling a national rollout of the unmanned branches as Kenya’s banking sector races to trim staff and freeze hiring, helped by investments in IT and the introduction of agency banking.

“This offers a cheaper cost to serve our customers and the benefits will be passed to them,” said Bhartesh Shah, Stanchart’s head of digital banking Africa and general manager in charge of integrated distribution channels in East Africa.

“We are offering our customers hustle-free banking with no tellers and a cashless environment other than the ATMs.” The bank’s wage bill grew by a quarter last year to Sh4.6 billion compared to Sh3.7 billion in 2011.

The wage bill of most top banks rose by double-digit last year in what has seen a number of top banks like Barclays mull job cuts to protect profits.

The pay increment is linked to the talent war that has seen lenders raise pay for management and the sharp growth in the salaries of non-management staff following negotiations fronted the Bankers Insurance Finance Union (BIFU).

Lenders say they are betting on agency banking and technology-based delivery channels such as ATMs, mobile and internet banking to cut back on new hiring.

Standard Chartered Bank says it will modify its existing 38 branches to include electronic banking suites and further plans to upgrade its network of 97 ATMs countrywide to perform additional functions.