What do banks say about the wave of layoffs?

(NLDO) - Many banks are restructuring and cutting staff in traditional positions in the trend of digitalization, but not mechanical streamlining.

The consolidated financial statements of the fourth quarter of 2024 of many commercial banks show that the total number of employees of the banks still increased compared to the same period last year. However, among the 27 banks listed on the stock exchange, the picture of personnel is different.

BIDV's report by the end of 2024 shows that the total number of employees of the bank and its subsidiaries is 28,998, a decrease of nearly 1,000 compared to the previous year. Sacombank also cut more than 400 people, bringing the total number of employees to 18,088. VIB cut about 500 employees; ACB cut 365 employees...

Speaking to a reporter from Nguoi Lao Dong Newspaper , a representative of Sacombank said that the bank is restructuring its apparatus towards streamlining. This process has been implemented by Sacombank according to a roadmap many years ago.

The bank has re-arranged transaction points, operating many digital transaction points 24/7. Sacombank has also digitized many internal processes, applying automatic storage technologies and robots to handle repetitive tasks.

Many banks apply digitalization to their operations, streamlining their human resources systems.

From that context, the bank restructured and streamlined the human resource system. Personnel positions were arranged according to a new model, streamlining positions that did not meet the standards of capacity, qualifications, and highly manual work that could be replaced by machines. The bank carefully considered the needs of personnel for reassignment to other positions and considered the personal wishes of each person along with support and welfare policies...

"Artificial intelligence (AI) or new technology trends are of interest to banks. The bank has an attractive recruitment policy for positions related to these trends and prioritizes candidates who not only know but can apply them well, creating products and services that are truly useful to customers" - said a representative of Sacombank.

According to banks, the wave of staff cuts in the digital transformation trend is an inevitable development process under the impact of digitalization. Streamlining does not happen mechanically. Banks still recruit important positions to promote business, prioritizing personnel with skills to apply technology to work.

Mr. Dinh Duc Quang, Director of Currency Trading Division, UOB Vietnam Bank, analyzed that the position of counter staff supporting customers to open payment accounts, previously this department needed about ten people. The staff would receive the request to open a payment account from the customer, send it to the controller, the manager to approve the file, update it on the system... Now, customers just need to sit at home, open an account via the digital banking application (app) and immediately have a payment account, much more convenient and faster. This department used to need about 10 people, now only needs 2-3 people and the reduction is inevitable.

According to Mr. Dinh Duc Quang, if the bank cuts about 50-70 employees in the operations and administrative departments, it will need to recruit more employees for direct sales, consulting, and selling products to customers.

"Manual and data entry tasks that can be replaced by technology must be reduced. Employees must be more proactive, go out to interact, learn and connect with customers, because banks cannot design robots to convince customers. Even in the cross-selling of life insurance products, employees need to take insurance sales courses, improve their knowledge, analyze the benefits and disadvantages for customers to agree to buy insurance" - Mr. Dinh Duc Quang said.

Source: https://nld.com.vn/ngan-hang-noi-gi-ve-lan-song-cat-giam-nhan-su-196250305152819512.htm