Standard Bank Retrenches over 1500 Employees and Contractors As South Africa Economy Collapses

– Standard Bank South Africa is pushing ahead with its plans to retrench over 1500 permanent Employees and Contractors.
– The Bank is also closing over 100 branches out of their 1200 branches across South Africa or approximately 20% of their branches in South Africa.
– Some Contractors have already been given Notice and their last month

What is happening here?
In the past year Eskom and SABC have announced major retrenchments. This is not to mention what has been happening in the construction and mining sectors.
The days of the big corporate employer is over in South Africa
A few years ago when I was in the states I saw rows upon rows of closed manufacturing factories in one of their states
This is the biggest sign yet of a big shift in the banking sector in South Africa mainly because of the unsustainable banking models of the Big 4 Big:
– High Costs Structures, especially Brick and Mortar Branches
– High Fees and High Interest rates on a few niche group of over borrowed customers
– Bad loans due to a high percentage of Unsecured loans
– Collapse of the JSE over the past 2 years is putting pressure on Non Interest income
– Entry into the market of leaner, more innovative competitors such as Tyme Bank, Capitec and Discovery Bank

Its important to state that this is Standard Bank’s 3rd large scale retrenchment in the past 15 years. One came around 2007, the next around 2013 and the latest now in 2018.

The Chinese bought a large stake in Standard bank around 2010 and the bank has been moving to a contracting model, where the majority of their staff members are on contract. This makes it extremely easy to dismiss contractors ad reconfigure within a short space of time.

My Key takeaways from this big story
– Banking Is being Disrupted in South Africa. The entry of Discovery Bank, Tyme Bank and other branchless banks is going to have far reaching impliocations for the Big 4 Banks – FNB, ABSA, Nedbank and Standard Bank.
-Employment is also being disrupted in South African Financial Services Sector. A job for life is no longer guaranteed!
– There will be more new entrants in the FSS as telecoms also compete for this space

So what do you do if you are in South Africa:
– f you were looking for a job in South Africa, this is time for you to consider immigrating overseas. The market is going to be very tight going forward.

What are you teaching your children? Don’t gone your child the same education that was suitable for our time
– You must have a side hustle which can sustain you if you lose your job
– focus on skills as opposed to career. Don’t call yourself an accountant, auditor etc
– live a lean lifestyle, don’t go out now to buy a Benz or move houses
– Debt is your worst enemy!
– If you get retrenched it’s not the end of the world