MAJOR: Mashreq Bank Is Closing 50% Of Its Branches In The UAE This Year
This includes 25 banks in total
Dubai-based banking institution Mashreq will close 50% of its branches in the UAE in 2019, its Chief Executive Abdul Aziz Al-Ghurair said on Wednesday.
The bank is reducing its traditional branches, which include 25 physical banks in total, and converting them into digital branches.
This move is a part of a dramatic digital transformation
"The branch closures are part of our digital transformation journey. In fact our business is growing and our new digital channels will continue to support our growth", said A-Ghurair.
The economy of the banking sector in the UAE is expected to grow by 3% this year, and Mahreq will be investing AED500 million for its digital transformation in the next five years.
Speaking about whether this move will result in massive lay-offs, Al-Ghurair said:
"Our business is growing so it is not that we are laying off people. We retrain them and give them a new opportunity. It is up to them if they want to do new job. Because all you have done is one job but you have to be prepared to do a new job. We would give new jobs to every individual, while some would take it, few would explore new opportunities."