Banks keep cutting jobs - and everyday Aussies are going to pay

Thousands of jobs crossed 2 of Australia's large 4 banks person been slashed this week, pursuing a concerning inclination of redundancies crossed nan sector.

Now, experts are informing that mundane Australian customers will salary nan price.

Several banks person announced wide occupation cuts complete nan past 12 months in a bid to boost earnings, combat operating costs, negociate workforce changes and clasp digitisation.

Bank of Queensland (BOQ) axed 400 roles precocious past year, past announced plans to shut 14 branches crossed Australia little than six months later.

July saw Bendigo Bank denote 10 branch closures crossed 3 states and Commonwealth Bank (CBA) cut 45 telephone centre jobs aft rolling retired an AI chatbot to woody pinch customer inquiries.

"I deliberation we should beryllium concerned," Today money master Joel Gibson told 9news.com.au.

"If you've recovered it difficult already to get bully customer work from your bank, ideate what it will beryllium for illustration without hundreds aliases thousands of nan humans who presently activity astatine nan bank."

CBA's AI chatbot rollout sparked interest among customers, who interest it won't beryllium arsenic effective arsenic speaking to a existent person.

But Gibson predicted that Aussies will person to progressively trust connected chatbots, AI agents and integer banking devices if banks support culling quality workers.

"And yet I don't expect we'll spot nan little costs guidelines passed onto america successful nan shape of little fees," he said.

Finance Sector Union (FSU) nationalist president Wendy Streets said AI is changing nan banking manufacture scenery successful immoderate "concerning" ways.

But she and invention and exertion master from The University of Queensland Dr Evan Shellshear agreed that AI unsocial isn't to blasted for wide layoffs.

"Out of each nan banks, only CBA has explicitly stated that AI was utilized arsenic a justification and it's not clear whether AI was a scapegoat present aliases not," Shellshear said.

"So I don't deliberation AI is nan awesome driving factor."

While immoderate tasks wrong nan banking assemblage could beryllium automated utilizing AI tools, different skills – for illustration communication, collaboration, productivity and guidance – can't be.

That's why immoderate banks person chosen to nonstop jobs offshore, but Streets warned it could raise information privateness concerns.

"Customers request to beryllium asking their slope wherever their information really sits," she said.

"Where does it go, if it's going offshore?

"We judge customers should beryllium made alert of that, and should person a prime astir whether their information really goes offshore.

"We person privateness authorities successful Australia, but tons of nan countries wherever our banks group up different centres, they don't person nan aforesaid level of privateness legislation."

Thought must besides beryllium fixed to nan thousands of Australians who person been put retired of jobs by immoderate of nan astir profitable businesses successful nan country.

Banking was already a competitory manufacture and layoffs crossed aggregate banks will only make it harder for precocious unemployed unit to find caller roles successful nan cost-of-living crisis.

Instead of cutting jobs to trim costs, Streets wants to spot Australian banks put successful their employees.

That intends upskilling existing unit to activity alongside AI devices and helping them accommodate to manufacture changes alternatively than sending their roles offshore.

"Our large 4 banks are successful nan apical 10 of nan ASX, they are globally successful companies that make successful excess of $30 cardinal successful profit twelvemonth successful and twelvemonth out," Streets said.

"There is nary excuse for them to put good, knowledgeable workers connected nan unemployment line. It's conscionable not bully enough."

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