Notices

Collective Bargaining Agreement Between the Korean Financial Industry Union and Financial Companies: Banking Hours from 9:30 a.m. to 4:00 p.m. and a 3% Wage Increase

Shortening bank operating hours may be desirable for bank employees from the standpoint of improving working conditions. However, it inevitably causes greater inconvenience for customers who use bank branches. At a time when commercial banks are already facing difficulties in competing with internet-only banks, I believe that shorter operating hours may further weaken their competitiveness.

A more desirable approach would be to reduce employees’ working hours while, at the same time, extending banking hours for customers. The current trend toward shorter business hours may, in the long run, accelerate the decline of white-collar jobs in the financial industry.

Banks should consider significantly extending their operating hours while introducing a two-shift work system to improve customer convenience. For example, banks could operate from 7:00 a.m. to 9:00 p.m., with employees divided into two teams working in shifts.

Today, a substantial portion of banking operations has been computerized and automated, making it possible to perform work efficiently with fewer employees than in the past. Under these circumstances, banks should consider introducing various work arrangements that allow them to extend operating hours while maintaining reasonable working hours for employees.

In particular, it is difficult to regard the limited use of bank branches, which are operated at considerable rental expense, as an efficient arrangement for either bank employees or financial institutions. I believe that banking hours and work arrangements should be restructured in a way that makes more efficient use of bank branches and personnel while also improving convenience for customers.