By Morris Aron

Are you a bank manager? If yes, then upgrade your information technology skills, because you may soon find yourself jobless.

According to the Central Bank of Kenya (CBK) report, some of the most lucrative positions admired by young people is seemingly on its deathbed due to increasing use of technology.

According to the  Banking Supervision Survey Report 201, banks are slowly phasing out the position of bank managers in favour of technology to cut growing wage bill.

decline

Central Bank of Kenya data indicates that management staff dropped by 5.5 per cent to 7,021 last year.

“The growth in staff levels affected all the cadres except the management cadre,” said the CBK in its banking supervisory report last year.

“The decline in managerial staff may be attributed to cost-cutting initiatives as banks try to manage their expanding wage bill,” added CBK.

While banks continued to increase staff numbers currently standing at  30,056 compared to 28, 846 a year earlier, the bank managers’ position is being increasingly discarded, a trend blamed on increasing use of technology.

Human resource specialists who spoke to The Standard say while the report has depicted a trend, it is still too early to predict whether this is a one off event.

“This is probably one of those decisions by the management in the financial industry,” said a source at the Institute of Human Resource Institute who requested not to be mentioned sighting protocol.

“Some of this positions like a bank manager cannot be totally replaced even with technology. In addition, there is need for more data before any concrete conclusions are made to that effect.”

cut back

According to the BSD report, banks  last year cut back on the number of managers in favour of more supervisory roles.

According to the data, In 2009, the banking sector increased the number of managers on its payroll by 6.4 per cent to 23.5 per cent.

During the same year, the banking sector reduced the number of supervisors, clerical and support staff.

By last year, the banking sector employed 1,620 employees of whom 917 were supervisors, 679 were clerks, and 24 support staff.

The changes in employment patterns captured what had been happening on the ground.

Barclays Bank last year set the tone for layoffs of senior bank managers in January 2010 when it sent home 200 managers.

Co-operative Bank followed suit, sending home four chief managers, four senior managers, and another 26 middle level managers.

Equity Bank also cut the size of its executive suite from 14 to nine managers. This follows the merger of directorship positions of marketing and treasury, human resource and customer service.

Heads of banks say the changes were brought about by the need for a leaner structure.

talent war

While bank managers faced the purge last year, directorship positions continued to earn higher, in what the industry attributed to a vicious talent wars in the quest to boost profitability, and  increase  market share.

Competition for key talent has seen senior bank managers and directors receive a pay rise over the same period.

The drop in the number of bank managers has perpetuated the notion that the position could be face more changes as financial institutions embrace technology and  adopt innovations as part of their day-to-day business and service delivery.

Also, Cutbacks in the number of managers in the sector marks a significant shift in Kenya’s banking industry that has in the past tended to focus on low cadre employees when retrenching workers.