Bank branch closure enhances operational efficiency, say associations

Composite of banks

KUALA LUMPUR: The closure of bank branches is an ongoing effort to enhance operational efficiency of banks, The Association of Banks in Malaysia (ABM) and The Association of Islamic Banking Institutions Malaysia (ABIM) clarified on Wednesday.

In a joint statement, the associations also said that technological advancements and growth of electronic payments had led to the convenience of conducting banking transactions without having to visit a physical bank outlet. 

“Transactions are being increasingly automated to promote better efficiency and expediency. In this environment, banks are focusing on digital platforms, as opposed to physical branches in delivering their services to consumers and businesses,” the statement said.

It said while there was a shift to electronic platforms, banks remained focused on delivering quality banking services which would not be compromised. 

“Banking institutions will continue to provide financing to support all sectors of the economy. Banks will also ensure that all segments of the population including those in the underserved areas will have access to banking services.”

In the new financial landscape, the banking sector remained optimistic on the prospects of employment in the industry, said the associations.

To enhance productivity and efficiency, bank staff may have to be redeployed and reskilled to fit the constantly evolving resource requirements of the industry.

The banking industry will be increasing its focus on areas such as risk management, fraud monitoring, regulatory reporting, Anti-Money Laundering compliance, cybersecurity and information technology.

“Our member banks have their own set of strategies and plans with regard to managing their manpower requirements based on their respective business objectives,” the associations said.

The banking sector is one of the higher productivity, knowledge-based sectors in the economy, with high-skilled jobs comprising 72% of the workforce in the financial sector. - Bernama