Standard Bank Group Ltd. is revamping its management structure and starting new business units to better meet the needs of its customers and generate fresh sources of revenue.<\/p>\n
From 1 January, the Johannesburg-based lender will split into three core-client segments: consumer and high-net-worth clients; business and commercial clients, and a wholesale clients business, Standard Bank said in an emailed response to questions on Wednesday.<\/p>\n
“These organizational changes will ensure that we increasingly show up as a single, unified entity with an integrated view of each of our clients,” chief executive officer Sim Tshabalala said in the statement.<\/p>\n
“The financial world is evolving rapidly. We\u2019re focused on ensuring that we remain relevant by offering more of the services and solutions that our clients need.”<\/p>\n
Standard Bank, which operates across 20 African countries, is digitizing its systems to fend off fintech firms encroaching on its customer base.<\/p>\n
At the same time, it\u2019s having to contend with increasing competition in its home market, where a recession and high unemployment is pushing financial-services companies into selling more products to existing clients.<\/p>\n
The lender is responding by fast-tracking the execution of this strategy with the internal changes, according to the statement.<\/p>\n
Poor score<\/strong><\/p>\n Standard Bank\u2019s shares have fallen 34% this year, compared with a 36% slump in the six-member FTSE\/JSE Africa Banks Index.<\/p>\n The lender\u2019s South African retail unit\u2019s net-promoter score, a common measure of customer loyalty, was one of the worst among banks in the 2019 South African Customer Satisfaction Index by Consulta, a firm specializing in customer-experience management.<\/p>\n “Standard Bank\u2019s biggest criticism in recent years is its net-promoter has been low, so it is probably trying to be more customer-centric,” Nolwandle Mthombeni, an analyst at Mergence Investment Managers, said.<\/p>\n “Just because you have changed the structure doesn\u2019t mean the culture has changed.”<\/p>\n Margaret Nienaber, who previously headed the wealth-management business, will run a new division called client solutions, which will deal with cost-effective plans for banking, investments and insurance, the bank said.<\/p>\n “These solutions will also be sold to third parties, creating new opportunities and new revenue streams,” Standard Bank said.<\/p>\nHere are other changes:<\/h3>\n
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