Dozens of employees have lost jobs as Cavmont Bank closes four branches.
Cavmont has closed its Lusaka Industrial, Mpulungu, Mwense and Mufumbwe branches leading to job losses.
But bank directors claim that this is just a normal restructuring aimed at optimizing the performance of the bank to ensure its long-term sustainability.
The restructuring process will consist of two main components, that is, rationalization of the branch network and the streamlining of head office support functions, according to Peet Van Der Walt, Cavmont managing director.
He said customers of the industrial branch can continue to access the ATM network as well as the other Lusaka-based branches while clients of the Mpulungu, Mwense and Mufumbwe branches will continue to have access to local Cavmont bank ATMs, make use of electronic and digital channels and they can access banking services from Mbala, Mansa and Solwezi.
According to Mr. Van Der Walt, Cavmont has sought approval from the bank of Zambia to ensure full compliance with statutory regulations and approval was granted for this restructure.
Mr. Van Der Walt said the bank has also met with the representative trade union, Zambia Union of Financial Institution and Allied Workers and the Ministry of Labor to inform them of the intended restructure and the regrettable impact of it.
He explained that details of the restructure was discussed with the Cavmont bank trade union in advance and that communication regarding the bank’s restructuring will in addition be sent to affected customers and employees of the bank as well as to affected service providers.