OWN CORRESPONDENT, Johannesburg | Monday 12.00pm.
NEDCOR said on Monday that if its proposed bid to merge with banking rival Stanbic goes ahead, the merged group will be hiring 7000 people in its first three years.
This is in stark contrast to a statement by the South African Society of Bank Officials that the merger will cost more than 10000 jobs.
“At present the two groups employ 50000. We believe that we need 40000, so it might be true that 10000 positions – note, not jobs – will be lost,” said Nedcor human resources director Lot Ndlovu.
“Bank staff are mobile and can move into numerous other fields. The big four banks lose 13,6% of their staff every year. If the combined group merely stopped hiring, after three years, the combined payroll would be down to 33000 – and we would have to hire a net additional 7000.”
Ndlovu said some clients will find they are over-exposed to the merged group and will gravitate to the other big two banks. These banks, in turn, will no doubt have to increase their payrolls to cope with the influx of business.
He said a number of medium-sized financial services companies are increasing employee numbers, as the sector booms. In addition, some 85 foreign banks are operating in South Africa and hiring South Africans. At the same time, he said in a statement, the insurance sector is growing apace. “I don’t think many competent bank officials will struggle to find work”, he said.
Ndlovu said technology is driving right-sizing around the globe. He added that technology has reduced the amount of a mortgage bond that was economical to banks from R80000 to R50000.
“This means thousands more South Africans will qualify for housing loans. This will provide a boost to building and other industries, generating jobs in these sectors.”
Ndlovu said Nedcor is confident that it can establish good morale in Stanbic after consummation of the deal. He said the other banks will “look on with envy” after the deal “establishes a regional champion banking group with lower costs and critical mass.”