Sampo cuts staff as customers migrate to the Web

Sampo cuts staff as customers migrate to the Web

Finnish bank Sampo has reached agreement with staff for the net reduction of 346 jobs from its retail and telephone banking operations in response to customer migration to Internet and automated channels.

The bank first announced the rationalisation programme in June, prompting a two day walk-out by staff which closed down many of the bank's branches.

The bank says that most of the cutbacks can be achieved through natural wastage with redundancies affecting no more than six personnel.

The Finnish bank says it is responding to the "enormous changes" in consumer behaviour as customers increasingly turn to the Internet and away from the branch and telephone to perform their basic banking transactions.

The number of customers in Sampo's Web Bank has nearly tripled in the last five years and 97% of the banking transactions of retail customers are nowadays performed away from the counter

Sampo is aiming for annual cost savings of EUR25 million through staff reductions.

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