Not many years have passed since the period when stores were the main growth driver of banks. It was the late 2000s, when their network had reached an all-time high of 4,000 units.
In almost every neighborhood the banking groups were competing for who would secure the best possible position. Large spaces, with showcases of several meters, able to attract the attention of the residents and businesses of the area, were the bone of contention for their administrations.
At the time traffic was skyrocketing. It wasn’t just those waiting to make a transaction at the counters whose numbers were a comparative advantage.
In the offices, individuals and businessmen even stood up and waited their turn to be served. In order to satisfy the demand, the banks also operated extended hours units, in the two largest urban centers, which were open in the afternoons, even on Saturdays.
The beginning of the end
15 years later the reality is completely different. The beginning of the end for banking as we knew it for a number of years began with the outbreak of the financial crisis, which led to an unprecedented forced transformation of domestic groups, under the weight of losses from cutting public debt. To date, 70% of the units have rolled. Many stores were merged, while others were closed permanently, as part of the strategy to reduce operating costs.
However, the change is not only numerical. Mode changes are also rapid. The pandemic was the catalyst for these developments. The need to avoid overcrowding in closed spaces has accelerated the digital transformation to provide as many services as possible remotely.
By appointment only
At the same time, the visit to a store stopped happening as it used to, unannounced. He needs an appointment. “At first this surprised many. Someone would come in for whatever reason, but be told they couldn’t be served at that time. He should schedule a meeting” reports a banking source.
He notes, however, that gradually people have begun to educate themselves and prefer the current regime.
“Some days at times when the shops used to be bustling with life, today they are literally empty” notes about it. This, according to him, is due on the one hand to the shift to electronic banking services for a number of tasks that until now could only be done in a store, and on the other hand to the establishment of remote service, both via video calls and by telephone .
Upgrade experience
At the same time, however, attempts are also being made to upgrade the units, which now resemble hotel lobbies rather than banks, with the aim of becoming comfortable and welcoming spaces for private meetings with clients. “In the past, someone might have discussed what he will do e.g. with his savings and a few meters away other customers were waiting their turn listening to everything. This no longer exists” stresses general manager of network of systemic group. After all, bank executives now also go to the customer’s place themselves, as long as it serves them better.
Reduced role
However, all this does not mean that bank branches will disappear. They will continue to be an important cog in generating jobs, albeit with a reduced role compared to today. For this reason, after the completion of the last round of restructuring of their network, the bank administrations have turned to its modernization, with the main aim of providing better quality service to those looking for savings, investment and loan solutions.
Cash registers are limited, available fewer hours or even eliminated in some cases, giving way to digital corners that allow cash transactions to be performed at automated machines. This frees up staff to focus on consulting services and delivering high added value programs.
The number of employees was reduced by 60%
In addition to shrinking their network, banks have significantly reduced the number of employees. The reduction from historical highs has now reached 60%, while only in the last 5 years it exceeds 30% in the four systemic groups, through voluntary exit and retirement programs. In the coming years, there will be new corresponding targeted actions, as the containment of operating costs is a necessary condition for the achievement of operational goals.
At the same time, however, recruitment is also taking place, as the need for personnel in critical sectors has increased significantly. The transition to the digital age presupposes the attraction of employees who will support the technological evolution of credit institutions and the consequent enhancement of productivity. “Now financial knowledge is not enough. Experience in other areas is also required, mainly in technology. We are fighting to attract qualified candidates and are willing to offer up to 50% higher wages compared to the industry contract to bring them into our groups,” a banking source noted.
Today, the specialties with the greatest demand in the banking sector are the following:
- Specialists in managing content on digital platforms and social media, with the aim of being understandable to the client, helping them find the solution that suits them and showing up as effectively as possible on search engines.
- Specialists in user experience design. They undertake the design of a customer’s entire journey from the moment of searching for a product to its acquisition.
- Developers specializing in cyber security and information protection.
- Internal systems audit. These are positions that require a combination of accounting and IT knowledge.
- Specialists in the screening and evaluation of automated models, which are increasingly used for the credit screening of borrowers.
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