Equity Bank Kenya, a subsidiary of Equity Group Holdings, reduced its workforce by 5% in 2023 as the lender accelerated its digital transformation efforts. The bank’s headcount fell to 7,763 employees from 8,178 in 2022, according to the group’s latest sustainability report.
The staff reduction comes as Equity Bank Kenya reported a significant increase in customer numbers and total assets. The bank’s customer base grew to 12.9 million in 2023, up from 12.3 million in 2022, while total assets rose to over KES 1 trillion.
Gerald Warui, Managing Director of Equity Bank Kenya, emphasized the bank’s focus on digital capabilities. “We have made significant strides to ensure that customers can access banking services wherever they are. This has been achieved through our strong emphasis on enhancing digital capabilities and digital platforms for mobile devices,” Warui stated.
The shift towards digital banking appears to be impacting traditional branch operations. Despite opening five new branches in 2023, bringing the total to 195, the bank saw a decline in its workforce. This suggests a potential restructuring of operations to align with changing customer preferences and technological advancements in the banking sector.
The report also revealed a sharp decline in staff retention rates, dropping to 81% in 2023 from 94% in 2022. This decrease coincided with a substantial increase in new hires, which more than tripled to 1,213 in 2023 from 375 in 2022. These figures indicate a significant churn in the bank’s workforce, possibly reflecting the changing skill requirements in the evolving banking landscape.
Despite the reduction in staff numbers, Equity Bank Kenya reported an increase in revenue to KES 93.7 billion and a profit before tax of KES 25.2 billion for 2023. However, the bank’s customer satisfaction score decreased to 81% from 90% in the previous year.
The bank’s focus on digital transformation is part of a broader trend in the African banking sector, where financial institutions are increasingly leveraging technology to improve efficiency and reach underserved populations. This shift is particularly pronounced in Kenya, which has been at the forefront of mobile banking innovations in Africa.
Equity Group’s sustainability report also highlighted the bank’s efforts in employee development. The average training hours per employee increased to 64 hours in 2023, indicating a commitment to upskilling staff in line with the evolving needs of the business.
The group maintained its focus on gender diversity, with women comprising 46% of Equity Bank Kenya’s workforce. At the group level, the percentage of women in management positions increased slightly to 34.8% from 33.82% in 2022.
Environmental sustainability also featured in the report, with Equity Bank Kenya disclosing its energy consumption at 11,502,328 KWh and a carbon footprint of 10,172 tons of CO2 equivalent for 2023.
