NET12 Bank tellers and technology

One of our NET12 unit readings is the Langdon Winner paper Who will we be in Cyberspace? which expresses reservations on the changes wrought on society as new forms of technology are adopted. He specifically mentions traditional roles such as bank teller and teacher disappearing, which made me recall the changes I’d observed during my time in the banking industry.

I posted this story in the student discussion area, and thought I would put it here too.

I worked for one of the “big four” banks for several years from the late ‘80s and through the ‘90s, so I was fortunate to see what it was like before and after the old mainframe terminals and paper reports were replaced with PCs and GUI, before and after telephone banking and internet banking came into existence. By that time ATMs had been around for a few years, and I recall an old highschool teacher of mine steadfastly refused to use ATMs because, sharing Winner’s fears, he declared it put bank tellers out of jobs!

The first PCs in bank branches appeared in the managerial departments, and it was the death knell as far as the managerial staff were concerned. The traditional role of bank manager, who knew everything about their customers and made important credit decisions based on their local knowledge, faded out of existence as the content of customer files became digitised and decisions became centralised.

A new breed of bank manager emerged, the locally respected financial authoritarian was replaced by an anonymous salesperson who, with a swathe of new financial products (thanks to various legislative changes) had high sales targets and high expectations of the branch staff.

The branch staff were transformed from the operational role of performing the bank’s functions, to a primarily sales role. Tellers were expected to flog products as they counted coin. Where monthly sales targets were consistently not met, decisions were made about the viability of keeping the branch open. The local bank branch was transformed from an institution to a MacDonald’s franchise – a “fast-finance” outlet. Staffers who didn’t like the new sales regime of the branches looked to the new operations centres, or left the bank altogether.

I was one of those who moved into an operations centre. These were shrinking too, they began as regional centres, by the time I worked in one it was a single state centre based in each capital city. By the time I left the bank, the state centre was about to be further rationalised into a national centre based in Melbourne, the number of bank branches had been severely reduced and uptake by customers of phone and internet banking was huge.

Some time after leaving the bank I switched my accounts to one of the community based banks that have sprung up in recent years. These seem to be filling the void left by the closure of the other bank branches. Even so, it is pretty rare that I venture into my local branch. I much prefer the convenience of internet banking, when I think of “bank” these days I tend to picture a web site rather than a building! I sometimes think about my old highschool teacher who hated ATMs, and wonder what his take on all the changes might be.