Societe Generale Planning to Cut Jobs in French Retail Bank

Published Date : Oct 21, 2015

Mobile banking is hailed as to be a disruptive technology. Ten years back this trend was at its infancy stage. However, we are seeing this trend in action more than ever now. So, is it right to say it is still a disruptive technology? Or just a very prominent trend in the banking world. One of the biggest example of mobile banking disrupting a market can be seen in the U.S.

Bank of America in the past few years has closed down hundreds of it physical branches as the number of users opting for mobile banking is growing. This move is helping banks to cut down their costs substantially. Now this trend is running strong not only in the U.S. but also in other countries.

Societe Generale (SocGen) is planning to cut down around 2,000 jobs from its French retail network in the next five years, according to the CFDT union. The nation’s second biggest listed banks are betting on online business to cut costs. In France, banks are reorganizing their retail businesses in order to drive the growth in a low-interest rate environment as the reach of Internet and mobile banking is growing rapidly and footfall in branches is decreasing.

According to SocGen, the number of jobs cut is not yet confirmed and this matter is still in negotiations with the unions. As any cuts will be made via retirement plans. According to the CFDT union, SocGen is now considering around 20% of its approximately 2,000 branches and around 2,000 jobs in the country.

Banks in France are challenged by the growing cost of retail operations as compared to other European countries they have a vast branch networks and poorly developed use of digital services, stated HSBC. In 2014, BNP Paribas closed its 52 branches in France and is expected to close around 100 branches in 2015