KUALA LUMPUR: Banks are closing branches or downsizing as they move towards more automated services, said commercial and Islamic banks operating in Malaysia.

“The advancement in technology and growth of electronic payments have led to the convenience of conducting banking transactions without having to visit a physical bank outlet. Transactions are being increasingly automated to promote better efficiency and expediency,” the Association of Banks in Malaysia (ABM) and the Association of Islamic Banking Institutions Malaysia (Aibim) said in a joint statement yesterday.

“In this environment, banks are focusing on digital platforms, as opposed to physical branches in delivering their services to consumers and businesses,” they noted.

In this new financial landscape, both ABM and Aibim gave an assurance that the banking sector remains optimistic about the prospects of employment in the industry.

“To enhance productivity and efficiency, bank staff may have to be redeployed and reskilled to fit the constantly evolving resource requirements of the industry.

“Our member banks have their own set of strategies and plans with regard to managing their manpower requirements based on their respective business objectives. The banking sector is one of the higher productivity, knowledge-based sectors in the economy with the composition of high-skilled jobs at 72% of the workforce in the financial sector,” they said.

The joint statement by ABM and AIBIM follows news reports of banks trimming the number of physical branches in the past year.

In August, CIMB Group Holdings Bhd group chief executive officer Tengku Datuk Seri Zafrul Abdul Aziz was quoted as saying that the group had shut down 22 branches nationwide since August 2015 to reduce operational costs and focus on digital banking.

Later that same month, Malayan Banking Bhd group president and chief executive officer Datuk Abdul Farid Alias said the group will close or relocate branches with low demand as part of its branch optimisation effort. This follows a leaked list which revealed that Maybank was closing down 27 branches.

Meanwhile, ABM and Aibim assured consumers that the banks will remain focused on “delivering quality banking services which will not be compromised” and those in the underserved areas will have access to banking services despite the shift to electronic platforms. “Banking institutions will continue to provide financing to support all sectors of the economy.”