South Africa’s big banks quietly cut over 7,000 jobs

 ·14 Oct 2024

South Africa’s traditional banks have been reshaping their operations to align with the growing dominance of digital banking, a transformation that has led to the loss of approximately 7,000 jobs.

This shift is driven by the banks’ efforts to enhance efficiency and adapt to changing consumer preferences.

However, while job cuts have been significant, this doesn’t imply that banks are not hiring; rather, they are focusing on new skill sets to meet the demands of the digital era.

In 2024, the rise of digital banking in South Africa has been dramatic. Standard Bank, one of the largest financial institutions in the country, reported a 30% increase in online transactions in the first half of the year.

Clients conducted a staggering 1.5 billion digital transactions during this period, averaging about 10,400 digital transactions each month.

By contrast, physical branch transactions have become nearly obsolete, with customers completing just 0.017 transactions in-person per month.

Other major banks have also experienced similar surges in digital banking activity as clients increasingly turn to mobile apps, online platforms, and self-service options to manage their finances around the clock.

This widespread shift toward digital banking has forced banks to recalibrate their operations, leading to significant reductions in staff.

For example, FirstRand—which includes FNB, WesBank, and RMB—had 40,233 employees in 2019 but saw its workforce drop by over 2,702 to 37,531 by 2024.

Nedbank, which had 25,267 employees in 2019, saw its workforce drop by over 3,000 to 22,245 by mid-2024.

Similarly, Absa reduced its staff by more than 1,000 employees, from 28,595 in 2019 to 27,042 in 2024.

Although Standard Bank’s staff has increased modestly by 134 employees over the past five years, its overall staff numbers have remained relatively stagnant.

The reduction in staffing is closely tied to the banks’ decreasing physical presence. In 2019, Nedbank operated over 600 branches, but by 2024, that number had fallen to 547.

Absa also scaled back its branch network, dropping from 640 branches in 2019 to 618 in 2024. This contraction is largely a result of the growing adoption of digital banking solutions.

As customers embrace online and mobile banking, the demand for in-person services has declined, making it harder for banks to justify the costs of maintaining extensive physical networks.

BankEmployees 2019Employees 20245-year Change
Standard Bank (SA)29,57829,712*+134 (+0.5%)
Absa28,59527,042-1,553 (-5.4%)
FirstRand40,23337,531-2,702 (-6.7%)
Nedbank25,26722,245-3,022 (-11.9%)
Total123,673116,530-7,143 (-5.7%)
*FY2023 numbers.

While these job cuts reflect the shift toward digital efficiency, they do not signal diminishing opportunities within the banking sector.

In fact, as banks reduce their physical footprints, they are increasingly on the hunt for employees with specialised skills in Information Technology, data and analytics, emerging risk management, and Environmental, Social, and Governance (ESG) initiatives.

These roles are crucial in enabling banks to navigate the complexities of the digital age while addressing new regulatory and sustainability challenges.

Despite the decline in physical branches, some banks have continued to invest in expanding their presence, albeit in a different format.

Over the past year, Standard Bank added more than 30 new branches between FY 2022 and FY 2023, while FNB increased its network by nine branches.

However, it’s important to note that these expansions often include alternative points of presence, such as mobile branches and retail kiosks, rather than traditional brick-and-mortar locations.

This demonstrates that while physical banking is evolving, it is far from disappearing altogether.

The digital transformation in South Africa’s banking sector is reshaping the workforce, cutting traditional jobs but creating new opportunities in technology, data, and ESG-related fields.

As the industry continues to evolve, banks will need to balance digital innovation with maintaining some level of physical presence to meet the diverse needs of their customers.

This ongoing shift highlights the dynamic nature of banking in the digital age and the emerging opportunities it brings for employees with the right skill sets.


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