Zimbabwe: Technology Forces Closure of Zimbabwe Banks

Harare — THE phenomenal increase in mobile transactions in Zimbabwe is forcing banks to shut down some branches and lay off workers.

Central Africa Building Society (CABS), one of the country's oldest financial institutions, announced it was closing 18 branches nationwide.

"In line with our branch rationalisation strategy, the branches will be closing down on 31 March 2020," the Old Mutual-owned bank stated.

Stanbic, owned by the South African-headquartered Standard Bank, this week announced the closure of two branches with effect from the same date as it embraces a new digitisation strategy.

Zimbabwe's banking sector has been hit by uncertainties, in the wake of inconsistent monetary policy changes, lack of cash and the advent of mobile banking in the last three years.

A number of established banks have been downsizing, in the process retrenching hundreds of workers.

Mobile banking has led to customers migrating from traditional banks.

Banks are experiencing cash shortages and with customers getting only about ZWL$100 in coins (equivalent to US$5 or R100), people resort to mobile transactions.

Traditional banks like Standard Chartered Bank have maintained just three branches- one in Harare and two in Bulawayo.

First Capital Bank (formerly Barclays Bank) also has two outlets.

See What Everyone is Watching

More From: CAJ News

Don't Miss

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.