UPDATE: The Bank of Queensland is under fire after announcing significant job cuts due to its partnership with tech giant Capgemini. This urgent development, confirmed during the bank’s annual general meeting in Brisbane on October 17, 2023, has raised alarms among shareholders who are concerned about the future of their jobs.
The partnership, announced in August, is linked to the elimination of 200 positions across contact centres, lending, and auditing departments. Furthermore, shareholders expressed fears that as many as 48 roles in the financial crime team may be outsourced, potentially moving jobs offshore. Bank chair Andrew Fraser addressed these concerns without providing specifics, assuring stakeholders that any decisions regarding staffing will comply with regulations from AUSTRAC, Australia’s financial crime regulator.
“We are living in a time of change,” Fraser stated. “That change is not about to abate.” He emphasized the necessity of the Capgemini collaboration, citing it would enable the bank to harness advanced technology to combat the rapidly evolving landscape of financial crime.
Earlier this year, the Bank of Queensland faced challenges with a $14 million expense related to a remedial action plan, following compliance issues identified by AUSTRAC. Fraser reassured shareholders that the bank’s commitment to anti-money laundering and counter-terrorism efforts remains strong, stating, “Any decisions we ultimately make will be in full accordance with our obligations to AUSTRAC.”
In addition, CEO Patrick Allaway revealed that the bank’s digital transformation is nearing completion, with 44% of customers successfully migrated to the new digital platform. “We are managing it carefully to minimize interim disruption to our customers,” he explained. Once fully operational, all retail customers will be transitioned to the new system, allowing the bank to retire outdated platforms.
Despite the shift towards digital banking, the Bank of Queensland remains committed to maintaining a physical presence, particularly in its home state, as the “role of branches evolves.” This statement comes amid growing uncertainty regarding job security for its workforce.
The Bank of Queensland has experienced significant financial strain, reporting a staggering 53% drop in its full-year net profit to $133 million. This decline was attributed to a writedown and costs associated with the recent restructuring and compliance measures.
As the bank navigates this transformative period, stakeholders are left contemplating the implications of these changes for the future. With technology partnerships becoming increasingly vital, the Bank of Queensland aims to secure its economic viability while grappling with the ongoing challenges in the financial sector.
The situation remains fluid, and further updates are expected as the bank continues its consultations with employees and stakeholders.
