Standard Chartered has cut nearly half its workforce in the past decade, largely due to automation and digital transformation. Major banks, such as Equity, Absa, and KCB, are leaning heavily into digital-first strategies. While the digitization in the banking sector is inevitable, banks should determine how they can modernize without marginalizing the people who built them. Digitization is not the enemy. It has enabled 24/7 services, faster loan processing, mobile-based banking for the unbanked, and streamlined operations. However, what’s often missing from the conversation is the social cost of digital transformation. Positions such as cashier and call centre agents were roles that were once seen as stable entry jobs are now at a high risk of becoming redundant. Modernisation should not be a trade-off between progress and people. It must be inclusive.
One of the ways that Kenyan banks can modernize without marginalizing include transforming redundancy into redeployment, where Rather than laying off employees when digital systems render their roles redundant, banks should create internal transition pathways. For instance, bank tellers can be reskilled as digital assistants for mobile banking. Banks know that these employees understand their systems and customers. They’re a valuable base to build the future workforce on. Second, banks should strive to develop an upskilling program and collaborate with tertiary institutions to train the youth in areas such as artificial intelligence and digital literacy. Banks that invest in their people won’t just retain talent, they will foster loyalty in a time of cultural transformation.
Third, banks should prioritize equity in digital based transitions. Most support roles in banks such as customer service positions are majorly held by women and low income earners. This may be a disadvantage to them because such positions are at a high risk of becoming redundant due to automation. Banks should conduct equity audits which will help in answering questions such as are there gender biases in the potential impact that a tech rollout may have. Kenyan banking institutions should abandon the mindset that revolves around replacing human workforce and instead foster design workflows where employees can leverage on digital tools such as artificial intelligence to perfect their roles in the company. This hybrid model preserves employment, improves service quality, and creates trust which is something that algorithms can’t easily replicate. Banks should be recognized as social institutions. This is necessary because if they want long term public trust and brand loyalty, they must commit to sustainable workforce transformation, not just quarterly financial targets.
The Kenyan banking sector is in a dilemma. It can take the path of silent job cuts and opaque automation, or it can lead Africa in building a human-centered model of digital transformation, one that blends AI with empathy, and progress with protection.
