The COVID-19 pandemic has boosted the acceptance and utilization of digital banking products in our everyday activities. Consequently, banks experienced the financial benefits arising from digitalization, which motivated them to reconsider the need for maintaining a well-developed network of physical branches across the countries. U.S. Bancorp initiated a branch transformation program in 2019, which should lead to the closure of 15 percent of the branches. The bank expanded its transformation plans to close down another 15 percent of its branches in 2021 and according to the data published on their website, they currently have a network of 2760 offices.
Considering the number of people that could be relocated or people whose job positions have been eliminated, what choices do these employees have, especially if other banks resort to similar plans?
The modern technologies in the field of banking have reduced the number of employees. Therefore, bank employees must learn banking technologies to transform from accountants or regular employees to employees who keep pace with modern technologies who can work anywhere.
Like all jobs that have gone obsolete (temporary) with Covid-19, we need to reinvent ourselves. The urgency to use digitalization which has been around for sometime has been speeded by covid-19 out of necessity. It has been forced on us because man did not conform to the laws of nature. We have environmental issues forcing us to do something despite environmental problems like pollution being around for a long time.
All banking employees whose position become obsolete due to the digitalised banking products and activities must get knowledge to do the work on line and have full knowledge of digital system to operate. Otherwise, survival is very difficult.
Since when have banks/bank owners become God? What gives them the right to fre employees simply because they have digitalised? If anything digitilisation should mean that the work previously done by x employees producing Y productivity in z timing and with a quantum of profits, will now be produced with (factually as shown by research!) with only slightly different outcomes to the variables here indicated. Bank employees, of all grades, are humans with a right to decent work and working conditions, and silly excuses such as "digitalisation" should not be broght up as excuses for firing humans. Where are the trade unions? They should be fighting tooth and nail against such obscene inhuman practices and policies!
Dr. John Consiglio
Dept of Banking and Finance,
The University of Malta
Unfortunately these are the facts that many industries are facing and especially service industries are on the top of the list due to their being in transformation from manual processing to electronic one. This has been on the agenda since the beginning of 1980s. Banking is a sophisticated business area. It has different departments. Different departments require different talents and training. I.e.deposit accounts may not require much training due to simplicity of the transactions, however it is the starting point for many bankers. Loans, foreign exchanges, corresponding bank relations requires more education and training. People working in those departments can find employment in other industries as finance people. They can manage the finances of the other manufacturing/merchandising businesses. They might require some accounting training as banking transactions are different than manufacturing company transactions.
I agree with Cenap. Investment in further training and education is the key. The support by the local governments - as is the case in a number of European countries - is of primary importance. Generally, there have been a lot of discussions of unemployment resulting from digitalization. Many of the skills in various industries (have) become obsolete. So oftentimes it is not the question, where to reemploy the people, but how to retrain them and in what fields.
@Ihar Sahakiants, the only choices remains for those employees, is to learn how fully utilize digital banking system so that they can engaged in the first batch of those who will deliver banking services by using digital knowledge
Change is the law of nature. So, in order to be a part of change, the affected bank personnel must try to sharpen their IT skills, and they will be at a better place, as they will be having a blend of knowledge relating to fundamnentals as well as technical aspects of banking, along with using newly acquired knowledge of IT in various activities relating to core banking. No time is bad to start learning something new.....moreover, various online portals are there, in India, for example, SWAYAM portal is there, where a number of educational courses are available. These are available at
www.swayam.gov.in
Best Wishes
Certainly this is one possible approach. But, let us consider, shouldn't such retraining and reskilling be accepted as a responsibility-to-provide on the part of the employing banks?
We are living in a totally capitalist age where at the sluightest of excuses ("reasons"?) employers of any kind, including the owners of banks, will throw out employees on the flimsiest of excuses, including that of "changes in technology"....were such people to have a Christian consnience they would in fact come round to accept the concept that from day one that an employer takes on a new employee he would be accepting a for life committment towards the development of asuch employee right up to retirement.... the whole idea of "redundancy" is dishonest!
That's easy! There are only two options.
1. The employees need to get trained continously so that they can catch up with the evolving banking-digital changes in the banking sector.
2. Leave the banking industry, and move to another industry that faces fewer technological changes
Glad to share our latest article about this topic in JKM:
Article Strategic orientation toward digitalization to improve innov...
Regards.
JEA
I suggest you investigate where there is a known shortage of talent, in today's pandemic world, it could be in the medical sector, or Gov agencies, and the like. Alternatively, you can look into new emerging businesses, Amazon has become a big global employer, despite going digital, fulfillment requires a lot of human capital.
The choices before such employees are basically two. To either remain in the past and perish or to accept the reality of the present and survive. Moving with the realities of the present means thinking out of the box. Grow by learning the ropes of new reality, become more digital, think and act entrepreneurially. Become a Job creator rather than Job seeker.
RETRAIN, RETOOL AND RE-INTEGRATE are the best options. Any career, even outside of the banking sector, employees must continually update and upgrade their skills in order to remain in the current industry. in addition, retooling one skills in order for cross-industry mobility is also a must. The use of technology in all industry and its integration into the work life of all industry are here to stay. In order to survive and able to integrate into allied industries in times of lay-off, one must always seek and train for new skills.
In my earlier contribution on this issue I forgot to mention that this is also another situation which shows the importance of all bank employees being members of strong and recognised bank employees' trade unions. In Malta the vast majority of bank employees are members of the MUBE (Malta Union of Bank Employees) and no bank here will dream of just throwing out employees on reasons of "redundancy", "digitalisation", ect etc blah, blah, blah....without first entering into serious negotiations with the MUBE. Reductions in head counts will only be agreed upon between the two parties if:
(a) Serious negotiations would first have been carried out;
(b) Provisions in existing collective agreements will be fully resopected by both sides;
(c) Changes to such existing pacts will only be accepted by the unions after really extracting from the employing sides very advantageous conditions for employees being released (e.g. substantial payouts, early regular pension payments, retraining for fitting into alternative jobs, etc).
(d) Any redundancies must always have the blessing of both the unions and government.
In a capitalist society these are the elements which should be in place for the protection of bank wiorkers.
Dr. John Consiglio
The University of Malta.
Attend retraining programs or life-long learning to switch to other jobs. Employees have to adjust to changes and the country can help out by providing skills training in other jobs that are in demand.
https://www.cbsnews.com/news/banking-100000-jobs-wells-fargo-analysts-automation/