Covid drives banking and finance jobs growth

rogers, Ian Rogers

The productivity of the banking and finance sector is being called into question, with ABS data showing that payroll jobs in finance in Australia are up a mighty 10.6 per cent since Covid unfolded in early 2020.

This growth rate is exceeded only (and understandably) by health and public administration, while payroll jobs are down in all other sectors.

Tom Gunson, partner and financial services leader at PwC Australia, told Banking Day:

“The increase in jobs in financial services since the start of COVID-19 is largely driven by organisations uplifting their key customer-facing teams (such as contact centres).

“This was the case across all sectors of financial services, however the largest impact was seen in the banking sector. These customer-facing teams received a significant increase in the volume of calls/queries not only as these support packages (for example, loan deferrals) were initially offered - but also as they came to an end and the banks checked in with customers on their ongoing ability to service their loans.”

Secondary drivers of jobs increases in the financial services sector “include their continued commitment to the delivery of their longer term transformation strategies in spite of COVID, which has required them to continue to grow their capabilities in skill areas such as data, digital and technology,” Gunson said.

“This has also resulted in a potential change in workforce composition (rather than total size), such as an increase in employees on the payroll (permanent staff) versus fewer contractor roles and use of external consultants.

“Deals activity has also created extra demand, on top of the substantive change agendas that pre-existed COVID-19 and remain in full flight.

“When organisations merge or are taken over, we should see efficiencies kick in in the mid-term and the talent demands for integration efforts decline.

“Some organisations are onshoring some activities as business continuity plans for offshore activity do not prove robust and operational risk is more manageable onshore. Whether this is temporary or permanent depends on the organisation and other contextual as well as strategic factors.”

Onshoring of jobs formerly undertaken mainly in India and also the Philippines is another driver.

Jason Hall, local executive secretary for the Finance Sector Union in Adelaide, said the uplift in payroll jobs reflected the decision of a number of banks (notably, in his domain, Westpac) that “bought some of that [processing] work back onshore from offshore providers.

“But this also is down to an increase in team size, especially around COVID and hardship,” Hall said.