Standard Chartered Bank is closing operations in 50% of its branches in Nigeria.
Bloomberg reported that Standard Chartered Bank has already started to shut some offices in December and will eventually operate only 13 branches in the West African nation.
A document seen by Bloomberg News showed that the London-listed lender’s local unit went down from about 25 previously.
Standard Chartered is strengthening mobile banking and recruiting agents to reach new customers and handle cash deposits and withdrawals across Africa’s biggest economy, according to officials who pleaded anonymity.
Bloomberg reports that a spokeswoman for the bank declined to comment and said it would address future plans at the “appropriate time.”
Standard Chartered Banks’ diversion to mobile banking follows a similar trend by other local counterparts in Nigeria – Access Bank and First Bank.
These banks are opting for mobile banking to streamline operational costs on the aftermath of the economic effect of COVID-19. They are building networks of authorized agents, or people within communities to sell their products and services.
Commercial banks are not alone in the digital banking revolution in Nigeria and Africa.
African telecommunication giants MTN and Airtel in late 2021 obtained licenses to pivot into mobile banking in Nigeria.
Both telecommunication companies are eligible to submit applications to the regulator for a final license that will enable them to accept deposits, offer remittance services, and issue electronic purses, in compliance to Nigerian regulatory guidelines.
