Years ago, when someone wants a bank account, he needed to go through lots of procedures. Nowadays, basic bank account can be obtained through an online application, without help from a teller. Deposit, withdrawal, transfer can be easily done through ATM and online banking. Although technology brings convenience and efficiency, increasing unemployment comes along. ATMs are more efficient compare to tellers when people just need to deposit or withdraw. And online banking can fulfill most customers’ needs. It is reasonable for the bank to build more ATMs and develop online banking rather than hiring more staffs.

However, in the article, it mentioned about Canadian taxpayers were helping Scotiabank, when it was in trouble. Scotiabank seems to be merciless now to cut down its staffs while making huge profits. Understanding from Canadians could be hard to achieve, since banks “can’t seem to lose.” Brand value for Scotiabank might decrease with the decision of cutting staffs, but it may not necessarily influence existing customers. The fact that Scotiabank is also engaging in international market, which means not all of their profit is made within Canada, also demonstrates that their profit may need to invest into other area rather than just Canada. I believe the best Scotiabank can do is to keep the same service quality, like waiting time in lines, and build more ATMs which does not need to add staff, while cutting jobs.

Picture: http://groups.ivey.uwo.ca/sicc/2012Files/Scotiabank.JPG

Article Link: http://www.cbc.ca/news/business/why-scotiabank-is-cutting-jobs-while-earning-billions-don-pittis-1.2823140