Embracing Automation in Banking

TPBank has continued its trend of reducing its workforce for the second consecutive year, significantly increasing the use of automation for routine tasks. Nguyen Hung, the CEO, emphasized that the reduction in staff numbers does not compromise service quality. Instead, nearly 500 automation robots have been deployed to handle simple tasks, enabling employees to concentrate on more creative and high-value work for customers.

AI Integration and Its Impact

A state-owned bank's head, who wished to remain anonymous, shared that the adoption of AI has made certain roles redundant. Where once several employees were needed to compile data and generate reports, AI now performs these tasks efficiently, eliminating the need for secretaries dedicated to such functions.

Shift Towards Digital Services

The Vietnamese subsidiary of Singaporean lender UOB highlighted a significant shift towards digital services. The account-opening departments, which previously required ten employees, now operate with just two or three staff members, as customers increasingly prefer online account setup.

Survey Insights and Strategic Shifts

A VnExpress survey of 28 banks revealed that while staff reductions were not universal last year, some banks have aggressively cut their human resources to accelerate digitalization. Among the banks that reduced their workforce, state-owned BIDV led with 1,100 layoffs, followed by VIB (480), Sacombank, and ACB (over 350 each).

Future of Banking Jobs

Nguyen Thi Quynh Phuong from Talentnet noted that these layoffs reflect individual banks' strategic decisions rather than a domino effect across the industry. She also pointed out that while economic pressures may have prompted these changes, they signify a broader strategic shift towards digitalization. The deputy CEO of a state-owned bank predicted that technological advancements would lead to more significant layoffs in the future, with 99% of transactions already being conducted electronically.

Adapting to the New Normal

As the banking sector evolves, employees are encouraged to upgrade their skills to remain relevant. Talentnet analysts suggest that banks need to communicate effectively with their employees about the necessity of these changes and how they can adapt to digitalization to enhance productivity. Nguyen Hung anticipates that layoffs will continue until 2030 when optimal automation is achieved, and technologies like AI and blockchain are deeply integrated into banking operations.

Creating New Opportunities

Despite the reduction in traditional roles, digitalization is expected to generate a high demand for talent in technology, data analysis, and customer experience design. A chief of a top bank mentioned that while technology may not replace roles that require direct customer interaction, employees in these positions will need to possess higher capabilities and qualifications to meet the evolving demands of the banking industry.