30 September 2016

Bank staff numbers to plummet as tech takes over - NAB executive

24 July 2012  |  9499 views  |  1 blurry people

The number of people employed by banks will tumble over the next two decades as technological advancements such as mobile services make large parts of workforces redundant, according to a senior executive at Australian giant NAB.

According to the Sydney Morning Herald, Lisa Gray, head of personal banking at NAB, told a lunch in Melbourne: "Today, most of the banks have tens of thousands of employees. Into the future, potentially through technology, there will be handfuls of thousands of people but really they're adding very significant and different value for customers as well."

Gray says staff numbers will fall "not in the next few years but over the next couple of decades as there's more use of technology both at that personal mobile digital level, also, though, as organisations such as ourselves continue to invest and streamline the way day-to-day transactions are done."

Mobiles are already driving change, with more than a third of Internet banking logins now from handsets, says Gray. Meanwhile, social media channels such as Twitter and Facebook are being used for "authentic dialogue" with customers, replacing more people-hungry channels such as branches and call centres.

Technology 'will reduce banking jobs' - SMH

Comments: (1)

Jan-Olof Brunila
Jan-Olof Brunila - Swedbank - Stockholm | 25 July, 2012, 07:42

This has already happened in Sweden, where automation, straight through processing, self-service, digitalisation of transactions and internal process efficiency measures over the last 15 years has lead to a large reduction of people employed in banks. Since 1997 most major banks have halved their staff numbers even though the business volumes have grown - this count is prior to any major outsourcings of tasks. Today customers manage most of their daily banking needs through the internet and via smart phones. Calls at branch offices are rare and in many times pre booked consultations on personal financial issues. Payments are mostly done with digital means via cards and internet banking, e-invoicing is growing. Cash is diminishing and many bank branches do not supply any cash services. All this is based on a well working infrastructure with high speed internet access and personal devices. The government push for digital infrastructure around the Millennium brought internet access and PC:s almost to every home in Sweden and now the rapid build-up of 4G phone networks will improve access even more.  Obviously banks need to supply true 24x7 systems access and the learing of the bank customers to embrace new electronic habits cannot be underestimated. Smart phones alone will not make it happen.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

"Brutal" jobs cuts at RBS spark debate on branch investment

"Brutal" jobs cuts at RBS spark debate on branch investment

19 June 2012  |  7503 views  |  0 comments
NAB to cut 1400 jobs from UK operations

NAB to cut 1400 jobs from UK operations

30 April 2012  |  4614 views  |  0 comments
Westpac axes another 119 IT jobs

Westpac axes another 119 IT jobs

06 March 2012  |  5535 views  |  0 comments
NAB racks up IT spending

NAB racks up IT spending

28 October 2011  |  6724 views  |  0 comments
NAB says social media 'break up' campaign has won new customers

NAB says social media 'break up' campaign has won new customers

08 June 2011  |  9147 views  |  0 comments
NAB online banking falls over again

NAB online banking falls over again

31 January 2011  |  9838 views  |  2 comments
NAB cancels Christmas as tech woes deepen

NAB cancels Christmas as tech woes deepen

08 December 2010  |  12336 views  |  1 comments

Related company news


Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.eu Visit contisgroup.com

Who is commenting?

Top topics

Most viewed Most shared
Ripple rudely gatecrashes Sibos partyRipple rudely gatecrashes Sibos party
10819 views comments | 35 tweets | 33 linkedin
BNP Paribas is working with clients on blockchain deploymentBNP Paribas is working with clients on blo...
7762 views comments | 15 tweets | 31 linkedin
US gets same day ACHUS gets same day ACH
7085 views comments | 23 tweets | 20 linkedin
PayPal and Lenovo team on biometric authentication for laptopsPayPal and Lenovo team on biometric authen...
6782 views comments | 13 tweets | 16 linkedin
Banks ready for real-world blockchainBanks ready for real-world blockchain
6780 views comments | 22 tweets | 29 linkedin

Featured job

Find your next job