Branch Expansion vs. Workforce Efficiency

Branch Expansion vs. Workforce Efficiency

Our latest analysis at Evopica reveals intriguing contrasts in branch network sizes and employee distribution among Ethiopian private banks.

-Branch Leaders: Awash Bank S.C. leads the way with the most extensive branch network, followed closely by Bank of Abyssinia and Dashen Bank S.C.. This reach reflects their established presence in Ethiopia’s banking sector and commitment to widespread accessibility.

-Workforce Distribution: Tsedey Bank S.C has the highest average number of employees per branch at 24, followed by Awash Bank S.C. at 23 and Dashen Bank S.C. at 21.

-Efficiency Models: In contrast, banks like Bank of Abyssinia and Cooperative Bank of Oromia have fewer employees per branch (13 and 11, respectively) despite their large branch networks, possibly signalling an emphasis on operational efficiency.

The Impact of Digitalisation

As digital banking infrastructure in Ethiopia develops, it could transform these operational models. In countries where mobile banking has become mainstream, banks have reduced branch expansion and workforce needs by offering robust digital services. If Ethiopian banks can adopt similar technologies, they could reduce in-branch workload, optimise operational costs, and enhance convenience for customers.

However, the transition to digital banking in Ethiopia faces hurdles, including limited internet penetration and a predominantly cash-based population. For now, Ethiopian banks continue to invest in physical branches and in-branch staff, but the potential for digital transformation is vast and may shape the future of the sector.

Stay tuned for more analyses!