Steward Bank restructures as digital transformation takes hold

Business Writer

Steward Bank has announced plans to reduce its workforce as part of a broader restructuring effort driven by its digital transformation strategy.

The bank’s CEO, Courage Mashavave, stated that the job cuts are a necessary consequence of the institution’s successful implementation of new digital technologies.

This move comes on the heels of a Scheme of Reconstruction approved by the bank’s parent company, EcoCash Holdings Zimbabwe Limited, earlier this year.

The restructuring is intended to streamline operations and improve efficiency, allowing the bank to focus on expanding its digital offerings and reaching more customers.

“Since 2021, the Bank has been on a digitalisation drive which resulted in the upgrade of its core banking system and the modernisation of its supporting infrastructure, to create capacity for business growth and enhance operational efficiencies by streamlining and automating manual processes,” Mashavave said.

This, he added, had resulted in improved internal digital processes, an enhanced experience for all customer-facing channels, and seamless interconnected digital products, which will widen the scope of financial inclusion through various channels.

Mashavave noted that the automation and digitalisation initiatives would fundamentally alter the bank’s business model and organisational structure “rendering some operational processes that require human resources redundant and therefore necessitating the need to streamline headcount”.

He said the process of offboarding some staff would be done in compliance with legal requirements, following full engagement with the affected employees along with consultations with the bank’s Workers Committee.

Mashavave added that the bank had put in place measures to ensure that the restructuring process would not disrupt normal banking operations for its customers and stakeholders.

The development at Steward Bank follows a broader trend within Zimbabwe’s banking sector, where institutions have been investing in technology, resulting in a streamlined workforce over the past few years.