Snapshot
of Industry
The banking industry is on the cusp of significant labor market
change as it begins to automate the many routine services that
once required office and administrative support workers, such
as tellers and clerks. By incorporating ATMs, direct deposit,
online banking, and debit and "smart" cards, banks will
begin to require new skills at a significantly high rate. Currently,
office and administrative support workers constitute almost 2
out of 3 jobs in the industry. Tellers account for nearly 1 out
of 4 jobs. By 2010, the U.S. Bureau of Labor Statistics predicts
that tellers will experience a 12 percent reduction in the banks’
labor force, while customer service representatives, currently
at 8 percent of the labor force, will grow by more than 37 percent.
Several other higher skilled positions will experience significant
growth, such as computer support specialists (53 percent), sales
agents (22 percent), financial analysts (16 percent) and marketing
and sales managers (12 percent).
In King County, the there are almost 1,700 banks that employ just
under 18,000 people and pay approximately $900 million in wages
annually.
Explanation of Industry Assessment
1.
Commitment of employers and/or labor to develop workforce and
contribute resources:
Through banking industry associations at the national, state,
and local levels, employers have committed resources to help further
the education of their workforce. Because of these resources,
the banking industry relies little on the two-year college system.
For example, the Washington Bankers’ Association provides
a fairly large array of on-line and in-person training, in addition
to providing customized "training available on demand"
for employees ranging from tellers to chief executive officers.
2. Workforce is a critical issue to industry:
Evidence of the banking industry’s reliance on its workforce
can be found by exploring the culture of training opportunities
supported by banks. Banks encourage upward mobility of employees
at all levels, including tellers, clerks and mid-level personnel
by providing access to higher education and other sources of additional
funding. Further, some banks have developed their own training
programs. Financial management and banking associations, often
in cooperation with colleges and universities, sponsor numerous
national or local training programs. Employers also sponsor seminars
and conferences, and provide textbooks and other educational materials.
Many employers pay all or part of the costs for those who successfully
complete courses.
3.
Importance of industry to economic development of Seattle-King
County:
Almost 18,000 people work in King County’s banking industry
comprising just under 2 percent of the local workforce. Banking
industry employees accumulate approximately $900 million in wages
each year.
4.
The WDC has the ability to address industry workforce issues (leverage
point):
Depending upon the receptiveness of the industry, and their identified
needs, the WDC could initiate a strategy similar to the Career
Pathways program that is currently working so successfully in
the health care sector. The banking industry is on the cusp of
significantly redefining several occupations as a result of automation,
including the teller position, which currently comprises almost
25 percent of its workforce. For this reason, Career Pathways’
career specialists could provide needed career counseling and
help broker training opportunities with community colleges in
the event the retraining needed exceeded the capacity of current
industry resources.
5. Existence of industry intermediary/association:
The Washington Bankers Association provides programs and services
that assist Washington banks and bankers to efficiently and profitably
serve the financial needs of the public. In addition to advocating
for the interests of bankers and their companies, the association
provides an extensive array of training opportunities for its
members and their employees using in-person, on-line and customized
"in demand" training venues.
6.
Degree of demand for workers through employment growth or attrition:
While national reports indicate that this industry will shrink
its employment base through 2010, local figures paint a slightly
different picture. According to the Washington State Labor Market
and Employment Analysis Unit (LMEA), bank tellers will grow in
King County by 11.3 percent annually through 2005 and then by
almost 7 percent through 2010. This is due to the fact that there
is a significant amount of turn-over in the teller position. Indeed,
most of the growth indicated by LMEA is due to replacements.
Additionally, there are several occupations that will experience
high change nationally through 2010. At least seven occupations
will grow in the double digit range, including customer service
representative (37.4 percent) and computer support specialist
(53.1 percent). Because of automation, seven occupations will
also shrink in double digits, including loan interviewers and
clerks (-34.0 percent), general office clerks (-19.8 percent)
and tellers (-12.4 percent). This last occupation is the most
significant because tellers represent almost 25 percent of the
industry’s workforce.
7.
Nature of industry demand (time-limited, long term, immediate,
future):
The industry is struggling to accommodate and capitalize on the
efficiencies presented by the information technology revolution
of the past several years. For this reason, the labor demands
upon the industry are immediate and relatively time-limited (throughout
2010).
8. Does the industry provide wage progression and career ladder
opportunities that can lead toward self-sufficiency:
While starting wages in the banking industry are relatively low,
so is the education required making it relatively easy to enter
the profession. Once employed, the industry provides many educational
opportunities for its workers and encourages life-long education
by subsidizing training and working within its association to
develop training programs customized to meet the needs of its
employees.
9.
Are there parallel efforts underway the WDC can leverage:
As the Healthcare Career Pathways initiative develops into a promising
venture, the WDC can leverage the lessons learned from implementing
this program in the health care industry and apply those lessons
to the finance industry. Further, the U.S. Department of Labor,
through Jobs for the Future, is interested in expanding the program
to another industry, so financial backing of the expansion may
be available. Other parallel efforts are not known at this time.
10. Participation of training and education institutions:
The banking industry is unique in that its association conducts
the majority of the training developed for incumbents. The American
Institute of Banking and the Institute of Financial Education
have several hundred chapters in cities across the country and
numerous study groups in small communities. Most banks use the
facilities of these organizations, which assist local banks in
conducting cooperative training programs or developing independent
programs. Some banks also offer their own training programs, such
as teller certification.
Level
of Engagement
Monitor – WDC staff recommends a six to twelve
month monitoring phase during which appropriate industry representatives
are identified and need and strategies are analyzed and developed.
If this first phase is successful, the WDC will be in a position
to lead or partner efforts to help the industry with its workforce
issues.
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