Standard Chartered Plc is planning to shut down 50 percent of its branches in Nigeria.
Gatekeepers News reports that Standard Chartered Plc is planning to close 12 out of its 25 branches in Nigeria to embrace digital banking.
According to Bloomberg News, the Nigerian subsidiary started closing down some offices in December and may drop to 13 branches.
While citing an industry document, the platform noted that the bank concluded the plans due to the pressure from mobile money providers.
Standard Chartered Bank is aiming at strengthening its mobile banking services and recruiting agents to reach new customers and handle cash deposits and withdrawals across the country.
The report further added that some insiders disclosed that the development is part of the company’s strategy to join others like First Bank and Zenith Bank in agent banking.
Banks in Nigeria are currently embracing digital banking to compete with fintech products across Africa, aiming at tapping into the outbreak of mobile money services.
In 2021, MTN Nigeria and Airtel Africa Plc received approval in principle to operate a payment service bank (PSB) in the country.
With the PSB, the two telcos can now join the financial services through digital means to bank low-income earners and people that do not have access to banking institutions for transactions.
Airtel, via its subsidiary – Smartcash Payment Service Bank Limited also received approval to operate as a super-agent.
Super agents are companies approved by the Central Bank of Nigeria to recruit agents for agency banking, such as financial services within communities on behalf of banks to deepen financial inclusion.
This strategy will help close the margin of the unbanked population at 36 percent of the adult population, representing 38 million Nigerians.
