Two Malawian banks are set to come together in a merger that will result in job cuts and a Temenos-based core banking upgrade.

Malawi Savings Bank (MSB) and First Discount House (FDH) Bank are the two entities set to merge, creating a new bank that is expected to be floated on the country’s stock exchange in the next three years or so.

The merger is good news for Temenos, as its T24 core banking system will be underpinning the new bank’s operations. FDH is already a customer of the Swiss vendor, but plans are in motion for a full upgrade from its current version R10 to R14.

MSB will be ditching its previous provider, Neptune Software, and its Rubikon system. It’s expected that by the middle of May of 2016 both banks will be running with T24 R14.

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MSB was originally founded as a state-owned bank, but last year the Malawi government announced that it would be selling its entire stake in the firm. FDH grabbed 75% in a deal that now seems to be bearing fruit.

Job cuts are also expected, something that Sobhuza Ngwenya, Group Head of Marketing at FDH, says has been undertaken in consultation with regulators in the country. The redundancies are required, he adds, as part of a business optimisation process.

Employees set to be released by FDH have staged vigils at the bank’s headquarters in Blantyre, demanding compensation. The protestors are reportedly angry that they were fired from their roles without notice letters.