First National Bank (FNB) says it plans to close over 20 outlets amid the growing adoption of digital banking channels.
FNB made the decision after launching a review of branch-related functions. The bank found that, during the expansion of its digital banking platform, there was a duplication of services and “unrealized efficiencies in our points of presence.”
“During this review, some sales and service outlets close to our full-service branches were identified as not being well utilized by customers, and these functions are being transferred into the nearby full-service branch,” Lee-Anne van Zyl, chief executive of FNB Points of Presence told Fin24.
“We anticipated that about 25 sales and service outlets will be affected,” Lee-Anne van Zyl, chief executive of FNB Points of Presence, told Fin24.
She said the closures will not affect any of the 716 full-service FNB branches. The bank is extending its network of ATMs that accept cash and cheque deposits.
FNB has around 1.5 million customers on its mobile banking application and more than 2 million users on its USSD cellphone banking platform.
“Our review noted that investments in risk prevention and identity confirmation infrastructure (including online fingerprint verification in partnership with the Department of Home Affairs) could produce greater savings,” added Van Zyl.
FNB’s full review of its branch network is expected to be completed by May, which could result in staff retrenchments.
“While a small percentage of employees will be affected, we are unable to make a statement at this stage regarding any job losses as redeployment, natural attrition, including retirements and resignations, together with the expansion of other business, will all have a substantial role to play,” Van Zyl said.
Fin24
