Barclays Kenya has hinted on the embrace of technology to cut its cost-to-income ratio to about 50 per cent a reduction by 6 per cent recorded in the previous year, which would have been 53 per cent if it had not paid staff retrenchment costs of Sh788 million.
By investing in technology, Barclays will reduce labour costs as well as improve efficiency in its services having already revamped its mobile and internet banking. The bank has currently installed 23 new intelligent automated teller machines (ATMs) to allow extra functions such as real time cash deposits and money transfer to mobile phones through a service dubbed “CashSend.”
With the roll out of automated physical security system, Barclays has reduced the cost of maintaining overnight guards as well as cut on power bills by eradicating the need to keep lights on through the night. This was motivated by increased operating costs due to the growing staff costs and a decreased net profit weakened by the one-off payment for early retirements.