Banks to open branches without employees

[Y_Participant 4591]

I wrote about robotics a few days ago here. Just saw this article below about employee-less banks.

Bank of America opens branches without employees
(http://www.thestar.com.my/tech/tech-news/2017/02/08/bank-of-america-opens-branches-without-employees/)

In an unprecedented effort to screw over both staff and customers at the same time, Bank of America Corp has opened three completely automated branches over the past month, where desperate customers can use ATM’s and have video conferences with bored employees hiding at other branches, according to spokeswoman Anne Pace – all for fun and profit. Or else – what would be the point – right?

One of the new ‘I win – you lose’ self-serve banks

New branches are typically smaller, employ more technology, and are aimed at selling mortgages, credit cards and auto loans rather than simple transactions such as cashing cheques.

Did I also mention it would be much easier for a victim customer if they went naked cashless?

Pace said there is one completely automated branch in Minneapolis and one in Denver, both of which are relatively new markets for the bank’s consumer business. They are about a quarter of the size of a typical branch.

And what was the main reason behind this?

A study released by the National Employment Law Project (NELP) in 2015 found that 30.4% of the 1.7 million retail banking employees across the country — more than 500,000 workers — are paid less than $15 an hour. Nearly three-quarters of low-wage bank workers are bank tellers.

The introduction and proliferation of automated teller machines n the 1970’s helped put the brakes on frontline staff wages, leading to a 1% growth over the next decade. As Timothy Noah noted for Slate in 2010, banks tellers earn “slightly less than [they] did in 1970,” putting the job at the center of wage stagnation that has become common-place throughout the middle class, especially within the context of expectations of higher productivity.

By shifting traditional banking services toward automation, low-wage bank workers now become the frontline for pushing financial products on to customers in an effort to increase profits. The pressure of sales quotas imposed by management and executives at the top keeps low-wage bank workers under more scrutiny than ever before.

Customer service employees in retail banks must not only attempt to hook patrons onto core retail banking services like checking and savings accounts, but must also resort to hawking mortgages and credit cards in ways CBB organizers say can be predatory. These staff risk termination if they fail to meet quotas for such products.

A 2013 Los Angeles Times investigation reported that the pressure of sales goals, which increase U.S retail banks’ profits, has led some bank workers to commit fraud, forging signatures, opening secret checking accounts with fees attached, or even credit lines for customers in order to keep up with their sales goals. This has led to lawsuits from customers and even cities decrying the rigid and unfair sales culture fostered by the banking industry. When these practices become public, banks fire employees and managers in alleged attempts to uphold ethical finance.

But as Khalid Taha, one of the first Committee members in California, currently employed at Wells Fargo in San Diego, describes it, the “impossible” sales goals come from the top and workers ultimately have no other option. “They fire the entry level employees which is us, but if you think about it, yes we are responsible for it, but we are also victims,” says Taha. “We have to keep our jobs, pay our rent. We have no way but to go a little bit shady when we deal with our customers because the company wants to meet their quota. They don’t care how.”

According an April 2015 report by the Center for Popular Democracy, since 2011, 17 different lawsuits across the top five banks in the country (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and US Bank) have been settled for nearly $46 billion, “highlighting a range of alleged illegal and unethical business practices.”

Back in 2010, SEIU’s new plan was to organize bank workers. Mike Elk described that effort as emanating from his realization that banks influenced the rest of labor organizing through its close connections to the pensions and investment banks that intertwined with financial decisions made not only by workers but their communities, as well.

Stephen Lerner, the architect of SEIU’s famed Justice for Janitors campaign, summed up the wealth disparity among bankers at the top and bottom of the pay brackets in a 2010 New Labor Forum article, writing, “We could increase pay by $2.00 per hour and provide employer-paid health insurance for over 550,000 tellers with just 3.6 percent of the bonuses paid out to executives.”

An April 2015 rally in Minnesota delivered 11,000 signatures on a petition calling for an end to sales goals, the Committee for Better Banks released a proposed bill of rights for bank workers.

CEO and President of union-owned Amalgamated Bank, Keith Mestrich announced in early August 2015 that the bank’s employees would be making at least $15 an hour under their new collective bargaining agreement. He told Buzzfeed, “We think it’s the right thing for our bank to do, and frankly we think it’s the right thing for all banks to do. … If any industry in this country can afford to set a new minimum for its workers, it’s the banking industry.”

“It was a little bit scary at the beginning, but we have to do it. If we don’t talk then the banks will do whatever they want to do,” says Taha.

However it appears things did not go according to plan – again people forget about technology in the fight between rights and profits ……

The following list from an Oxford study shows the susceptibility of jobs ending up with robots within 20 years.

https://www.replacedbyrobot.info/

[XSDBSParticipant 3598]

Just like the “self checkout” lanes at Walmart, Target, grocery stores, and even gas stations.
I’ve even seen restaurants with touchpad devices at each table to order/pay for food/drinks.
Instead of paying an employee, the customer “works for free”, cutting costs, and increasing the bottom line.

[Y_Participant 4591]

XSDBS wrote:

Just like the “self checkout” lanes at Walmart, Target, grocery stores, and even gas stations.
I’ve even seen restaurants with touchpad devices at each table to order/pay for food/drinks.
Instead of paying an employee, the customer “works for free”, cutting costs, and increasing the bottom line

This is just the start of a new wave of redundancies – like never before.

[BlacqueJacqueShellacqueParticipant 6890]

Nice read Yumbo, thanks for this. I was listening to CBC (C~~~ BROADcasting Corporation), Canada’s government propaganda arm, a few days ago and heard about a potential 40% reduction in jobs over the next decade due to automation. Any guesses which sex will be deemed useless in the world of real work?

40 per cent of Canadian jobs could be lost to automation, McKinsey chief says

[Faust For ScienceParticipant 22521]

This will backfire.

But, such attempts as this are good news. This shows that with populism spreading across the peoples of the world those at the top no longer have any trust towards the common people. And at the same time, those at the top want total profits and all the wealth.

One of the reasons that prevent a revolt towards a organization is that said organization has a few people will that are actually decent people. There are a few good apples.

Creating a business that sucks in wealth but did not locally recirculating at least some of the wealth being taken in, even in the form of low paying salaries for the employees of the local branch, will not attract customers. This will drive the customers away.

Also, it seems this is the first steps in an attempt to fully automate a police state. Such attempts will not work for several reasons.

[narwhalParticipant]

XSDBS wrote:

Just like the “self checkout” lanes at Walmart, Target, grocery stores, and even gas stations.
I’ve even seen restaurants with touchpad devices at each table to order/pay for food/drinks.
Instead of paying an employee, the customer “works for free”, cutting costs, and increasing the bottom line.

I’ve never thought of it as ‘working for free’ as I prefer to self checkout in most situations. It’s easier on me because the computer is easier to deal with than a person.

Just sticking with the bank, would you rather use the drive through teller or an ATM? The drive through person will likely take longer, and could very easily give you the wrong cash back. Plus, you may have to be polite when you don’t feel like it.

I wouldn’t call bank tellers as an example of wage stagnation, because the job of the bank teller is rather different today then it was back then. Without computers to do the calculations and bookkeeping, a teller had a lot more responsibilities. As the article states, the computer doesn’t even need the teller anymore to get the job done. Really, it makes as much as saying the milk man is a victim of wage stagnation.

Ok. Then do it.

[Y_Participant 4591]

narwhal wrote:

Just sticking with the bank, would you rather use the drive through teller or an ATM? The drive through person will likely take longer, and could very easily give you the wrong cash back. Plus, you may have to be polite when you don’t feel like it.

Good point – this is subjective but very real. I would prefer a human behind the counter – that’s just me. Many others – possibly the majority have no issues with machines. But I would ask this question – are we as a species becoming so isolated individually that we prefer machines to humans?

narwhal wrote:

I wouldn’t call bank tellers as an example of wage stagnation, because the job of the bank teller is rather different today then it was back then. Without computers to do the calculations and bookkeeping, a teller had a lot more responsibilities. As the article states, the computer doesn’t even need the teller anymore to get the job done. Really, it makes as much as saying the milk man is a victim of wage stagnation.

Any job or skill that does not produce an increment over inflation in monetary terms is considered as stagnant. The duties for a job have always changed with the times and very few keep the criteria they were originally meant for – so this is not in my opinion an attribute either way.

The reason behind being ‘stagnant’ in any trade is to be easily replaceable – initially with other staff and then with automation. ‘Replaceability’ is the key here that defines stagnation – not the actual trade or profession engaged in.

In this context – a non-sentient algorithm was recently appointed to the board of directors of a venture capital firm. And yes – the milkman will be next on the list, if he isn’t already.

[Y_Participant 4591]

BlacqueJacqueShellacque wrote:

Any guesses which sex will be deemed useless in the world of real work?

ha – no bet.

[Y_Participant 4591]

Faust For Science wrote:

But, such attempts as this are good news. This shows that with populism spreading across the peoples of the world those at the top no longer have any trust towards the common people. And at the same time, those at the top want total profits and all the wealth.

I guess the people will have to really end up with nothing before they do something. Like the Hunger Games. It’s all the constant brainwashing and the average joe doesn’t want to get beaten up – again.

[experiencedParticipant]

But who’s going to lie down on the ground when you yell, “Everybody on the floor, now!”

I suppose they might do it on the video tellers.

"It seems like there's times a body gets struck down so low, there ain't a power on earth that can ever bring him up again. Seems like something inside dies so he don't even want to get up again. But he does."

[Faust For ScienceParticipant 22521]

Y_ wrote:

I guess the people will have to really end up with nothing before they do something. Like the Hunger Games. It’s all the constant brainwashing and the average joe doesn’t want to get beaten up – again.

You underestimate the… aggravation of the average working man. This entire situation is a house of cards held up by the part of the population whom receive no reward and only suffering for doing so.

Do you want to know why nationalism and protectionism is now coming back. It is not just the common people, but the middle management sees themselves being replace with no pension nor rewards for their long service to those at the top. So, it is both those at the whom did the work, and whom enforce the rule, whom believe it is best to change course from what those at the top wish to happen.

[HitmanParticipant]

the age of automation is still in it’s infancy.
i stupidly went to a mcdonalds drive through,
ordered some of the death meals they sell,
pulled up and saw,
a machine fill the cup w ice and soda,
put a lid on it and it waited.
..
less people equals bigger profits.
robo-cop on the way ..!!!
.
this will happen more and more as corporate greed will force people out of jobs.
I.T. seems the job of the future.

[Anonymous 0]

With automated banking All your financial activity can be tracked for tax and reporting services.
Thanx, Yumbo. Insightful as always.

[Y_Participant 4591]

Hitman wrote:

this will happen more and more as corporate greed will force people out of jobs.
I.T. seems the job of the future.

When the robots / AI start to question and judge humans then the end would be near – one way or another.

Faust For Science wrote:

You underestimate the… aggravation of the average working man. This entire situation is a house of cards held up by the part of the population whom receive no reward and only suffering for doing so.

I really wonder about that – what kind of people we have as a collective become. Is the protectionism and nationalism a by-product only of selfish motivation? I am not talking about not closing the borders to islam.

Many of the changes happened when people were only directly affected – else they did not care very much what others are going through. Will the threat of robots run its course because people say it would not happen to them?
I have no answer to this level of human indifference.

Anonymous wrote:

With automated banking All your financial activity can be tracked for tax and reporting services.
Thanx, Yumbo. Insightful as always.

Kudos my friend – I completely forgot about that. Glad you have my back.

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