StanChart plans video banking as it steps up digital migration

Standard Chartered (StanChart) plans to launch video banking services in ongoing migration to digital banking, the East Africa CEO Lamin Manjang said Monday.

Video banking, in which customers will be served via video and audio links, will in the next three years replace the traditional across-the-counter service offered by bank tellers.

StanChart will also upgrade all its ATMs to cash deposit machines serve 45 per cent of its customers by end of the year, Mr Manjang said.

The automation could lead to staff cuts or slow down fresh recruitment for the lender, which let go about 167 employees last year in a restructuring that was initiated by its London-based parent company.

The Nairobi Securities Exchange (NSE)-listed firm disclosed the job cuts in its latest annual report, noting that the number of its employees has fallen to 1,881 from the previous 2,048.

Mr Manjang yesterday said the launch of its digital platforms would help to push the bank’s strategy “of using digital technology to enhance its operational and cost efficiency and convenience for customers.”

“In the past, the full range of services used to be available in branches and only part of it digitally. We want to have all our services available on digital channels.

Branch visits

So whether clients choose to reach us via mobile, phone, Internet or the branch, they will get the same, convenient, seamless banking experience. Branch visits will be for high value-added meetings and advice,” said Mr Manjang.

Under the model, the bank expects more than 45 per cent of her clients to transact on digital platforms by end of this year.

The new digital platform will also be rolled out in Botswana, Ghana, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe making it an extensive roll out by the London-based international lender.

READ: Stachart Kenya lays off 167

“Kenya has been placed at the forefront of the group’s roll out plans. Our clients will now enjoy an expanded list of utility companies allowing them to conveniently pay for their everyday needs. Through SC Mobile, clients can check balances, transfer money and pay bills, all through their smartphones.

The new online banking platform also offers a self-service option for wealth management; clients can set up their investment profiles, gaining access to investment products most appropriate for their profiles,” said Mr Manjang.

StanChart’s job cuts came after its London-based parent Standard Chartered Plc announced it would eliminate 15,000 jobs worldwide by 2018.

The parent bank last year announced it will invest $1.5 billion in technology globally over three years.

The retrenchments at the local unit follow a trend by Kenyan lenders seeking to contain ballooning staff costs by turning to technology.

StanChart’s staff costs have more than doubled over the last six years to hit Sh6.2 billion as at December 2015 from Sh2.8 billion at the end of 2009.

Besides automation of services –which has reduced the need for some roles— banks are increasingly looking to maintain low operating costs by reducing their staff count across various ranks.