Chairperson of the Standing Committee on Finance, Joe Maswanganyi, has warned the banking sector to guard against massive job losses as a result of the inevitable effects of the fourth industrial revolution (4IR).<\/p>\n
Presenting in parliament on Friday (30 August), Maswanganyi warned that the 4IR could see robotics and digitalisation replacing humans in the workplace.<\/p>\n
“While we welcome the 4IR and the developments and opportunities that it brings to our society, we cannot accept a situation where robots will replace people at the workplace.<\/p>\n
“That will be against our efforts of creating jobs and fighting poverty,” he said.<\/p>\n
Maswanganyi was reacting to reports about looming retrenchments in the banking sector.<\/p>\n
A number of local banks have closed a number of their branches throughout the country as a result of digitalisation, which encourages self-service, with clients using their cell phones and computers, rather than walking into a branch.<\/p>\n
Lenders are cutting jobs as they seek ways to lower costs and contend with slow economic growth and fresh competition in the industry from branchless, digital entrants such as TymeBank and insurer Discovery.<\/p>\n
Job cuts in the country are particularly sensitive as the unemployment rate has risen to 29%, the highest in more than a decade.<\/p>\n
Absa, Standard Bank, and Nedbank Group have all consulted with staff about cuts in recent months.<\/p>\n
Absa is restructuring operations across its business units, Standard Bank is closing 91 branches, while Nedbank is in talks with about 1,500 employees over job cuts or redeployments, Bloomberg<\/a> <\/strong>reported in July.<\/p>\n
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