Chinese Banks, Lacking Staff Members

Economy Nilgun Salim
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Four of the most powerful banks in China reported that the number of staff members dropped significantly in the last six years, especially in the first half of 2016, highlighting the possibility that employment peaked that are the world’s biggest providers of banking jobs.

The banks reported a 1.5% decline in comparison with the last year when more than 1.62 million workers from Agricultural Bank of China, Industrial & Commercial Bank of China, China Construction Bank Corp. were affected. These four are the largest employers in the banking system, but in the last quarter in 2016 the number of employees fell below 500,000.

A significant decrease in the employment sector is not a very good sign for the national economy. Companies such as BOC International Holdings and DBS Vickers say that major changes in the banking system represent the main reason when it comes to the limitation of hiring.

‘Chinese banks have gone through many years of expansion, but the workforce will continue to narrow while the technology advances and costs continue to reduce’ said Polar Zhang, the analyst at BOC International.

According to Bloomberg, Chinese banks deployed their staff members by not replacing the one’s who leave, according to Shujin Chen, a Hong Kong-based analyst at DBS Vickers Hong Kong.

Workers are departing in search of better pay, she said, adding that banks would need less staff as artificial intelligence and online and mobile transactions played a bigger role and lenders developed robots that would interact with customers.