Speaking Dear reader. Wednesday came the shock message. DNB is down 59 offices and disposes of 600 employees. The following day, DNB chief executive Rune Bjerke presented the results for 2015. A staggering surplus of 24.7 billion.
Is it really possible that DNB, one of the most solid banks, throwing workers out while billions flowing in?
the answer is yes. And this is just the start. New avalanche of closures and layoffs come. Customers have become their own bank managers. 3.7 million Norwegians are banking. They fix 90 percent of their transactions through internet banking and mobile. Fewer goes in the bank.
DNB has even launched payment service flicks. Until now, 1.4 million Norwegians downloaded the app, over half of other banks.
This is is digitization ingens price. Employees in all industries affected. In Sweden it is estimated that 450,000 jobs have been lost in the course of five years. It is expected that every job be automated away the next 20 years.
The changes in DNB and other banks controlled by the digital revolution and customers’ changing behavior. The development is painful. Competition for bank customers are expected to be more global than national. New digital players are already in the market. Competition may come from giants like Google and Facebook, which has data about people and tremendous distribution power.
Banks face the same reality such as the media industry, where international actors have taken over large parts of the advertising market in Norway.
Increased digitization and efficient self-service is a benefit for most people. But it’s the same customers and local communities also must pay digitization ingens price. Nordland is among the counties affected brutally. Banks in old Nordland Bank bastions like Narvik, Andenes, Fauske, Ornes, Mosjoen, Sandnessjoen and Bronnoysund closed.
It’s a matter of time before Sparebanken Nord-Norway and others to follow suit. Banks’ presence in the Norwegian communities are soon just a chapter in history books.
The banks have been important cornerstones in the construction of communities, cities and regions. Now is not the bank there when you need advice or guidance. It is sad that people in Fauske and Ornes must head to California to talk with a counselor about housing his loan.
For the business sector has close and personal contact with the local bank manager has been essential to ensure the financing of new projects or assumption. Local knowledge and local assessments have been the basis for important decisions. Banks have also been important contributors to support culture and sports in the community.
The time is over. The world is not like before.
Good weekend!
Jan-Eirik Hanssen
editor
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