As it looks to lean more on technology, fintech company, Renmoney Microfinance Bank Limited has shed off a chunk of its workforce. According to a Techpoint report, the company has laid off 391 sales officials as it moves to carry out lending and other services with new technologies.
This move comes as the company looks to go fully digital. The company has announced that it will no longer operate a “direct sales channel”, as operations like loan application, opening savings or fixed deposit accounts, will now be done using digital platforms – which will include a mobile apps.
According to the company it has “made investments in its technology capacity and adopted the best-in-class data science for credit decision making.” With these technologies, the company can boast 24 hours of loan review and disbursement.
With these moves by the company, there most likely will not be needs for sales staffs who are responsible for selling and marketing different products/accounts, hence the layoffs.
“Renmoney will no longer operate a Direct Sales Channel. This means unfortunately, we will have to let go of our direct sales employees and some supporting functions. All affected employees will receive their full benefits in accordance with the terms of their employment contracts.”
-Kieran Donelly, CEO, Renmoney Microfinance Bank.
According to sources in the know, beyond technology, “shareholders’ interests” may also have played a part in the layoff. This, as well as some internal issues that have been on for some time.
Also, as it is with layoffs of such magnitude, there might also be economic connotations to the action by the company.