Financial lender Standard Chartered Bank has announced the closure of its Malindi branch in a move linked to customer shift to digital banking platforms.
The move comes just a fortnight after Standard Chartered completed a simultaneous multi-market launch of its digitally-led retail banks in Tanzania and Ghana, with Kenya’s roll out scheduled to occur soon.
The launch of the digital banks is part of the bank’s overarching digital transformation strategy for the African continent.
The lender made the announcement via a gazette notice last week but it failed to disclose the reason behind the decision.
“This is to inform you that we will close Malindi branch effective May 1, 2019. We will retain our ATM services within Malindi for 24-hour express services and convenience,” StanChart said in the notice.
According to a news report by the Business Daily, following the announcement; Stanchart customers in Malindi will only access services from the lender from its two remaining branches in the region, the Maritime House Branch on Moi Avenue and the Treasury Square Branch on Nkrumah Road in the coastal city of Mombasa.
While announcing the opening of the Ghana and Tanzania outlets last month, Mr. Sunil Kaushal, the lender’s Regional CEO of Africa and the Middle East attributed the move to the company’s mission of expanding its presence across the continent through a digitally driven strategy.
“Digitising Africa continues to be an integral component of our strategic transformation, and we have been steadily expanding our footprint across the continent. We are constantly looking for ways to push the boundaries, by providing our customers innovative solutions and technologies,” Mr. Kaushal said in an official statement then.
The shift to digitally driven banking may spell danger for the lender’s staff despite the fact that it may lead to efficiency and reduced operational costs for the bank itself.