Bank Jobs,Branches to go.
It comes as no great surprise to hear that the Commonwealth Bank may cut up to 6000 jobs and 25 per cent of its branches in the coming three to five years. In recent months both NAB and ANZ have forecast job cuts of 4500 and 3500 respectively, both within the next twelve months.
The simple fact of the matter is that not all branches are profitable. With electronic banking becoming more popular customers have no need to visit their local branch for the everyday tasks of withdrawing or transferring funds. Couple this with the use of call centres and mobile lenders you find that the branches mainstay, Home Lending, is being taken away from them.
Undoubtedly the banks would like to redeploy the excess staff from the closed down branches to other areas within their organisation, but over the counter transactions are so inefficient in relation to electronic transactions that far fewer resources are needed to staff the electronic network.
The reality is that consumers have adapted to and seem to prefer banking via electronic means, whether that is over the phone, the Internet, via EFTPOS or ATM.