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How the Banks are handling Job Disruption

There was an Australian Senate Inquiry on what we are doing as a nation to secure our jobs – as we face massive disruption from automation , ai , machines and Business Process Outsourcing.

Labor’s Ed Husic said 3.5 million workers are under threat of having their jobs disrupted by technology.

The banking sector is in the running for massive disruption and Paul Smith from the AFR (fin review ) spoke to the CEOs of ANZ, Westpac and NAB to see what they were doing to prepare! 

Banks are already using robot technology on a large scale in its processing centres and this trend will continue.  

The banks need to plan for this change effectively, onboard skilled personnel (or upskill existing) and communicate with their employees, what this means and better explain how this benefits our customers.

NAB CEO Andrew Thorburn  announced its plans for the first 1000 of 6000 jobs it will make redundant over three years, and at the same time as it is looking to bolster its workforce with 2000 technology specialists.  These Specialists will probably need to be “imported in” – not sure what will happen to the 1000!

Thorburn said that NAB needs to ensure that they have the right people with the right skills and capabilities as the world continues to change. “We are committed to up-skilling people where it suits their aspirations and business needs, but there are limits,” he said 

Westpac’s CIO Dave Curran warned that 

workers aged over 35 risked being left in the blocks by the wave of automation and new technologies, unless management philosophy in large organisations adjusts to adapt to the changing world. We recognise that the bank has a responsibility to work with its staff to ensure they enhanced their employability.

They need to be upskilled in jobs that are not repetitive and done by machines in a fraction of the time! 

Westpac’s CEO Brian Hartzer said they were doing this in a number of ways, including partnering with industry experts and tertiary institutions to design development programs to deliver recognisable credentials to employees.

“Automation and AI have well and truly arrived and there’s no point pretending that technology isn’t going to affect jobs, but it can be a net positive for the economy if we embrace it,” Mr Hartzer said.

“We need to re-skill people and grow new jobs off the back of what technology can do so people can find new jobs.” Said ANZ CEO Shayne Elliott. “Automation is not new to banking – the  introduction of automatic teller machines is a case in point, where  the industry embraced a more efficient way of operating, and now the rapid adoption of mobile banking as a more recent example of how institutions need to recalibrate to match customer demand.

To say nothing of blockchain and Fintech! 

Here’s the real question – will banks survive in its current form?

Read more: http://www.afr.com/technology/big-four-banks-pledge-to-step-up-on-tech-jobs-threat-and-help-plot-the-future-of-work-20180317-h0xmcp#ixzz5ANsVKSTw 

Posted on March 21, 2018

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