Banking on change: Supporting people through finance sector transformation

The Australian banking and finance sector has long been considered a cornerstone of the economy; stable, resilient and a source of national pride. But in recent years, cracks have emerged in that foundation. Amid rising operational costs, technological disruption, and pressure to protect profits, banks and financial institutions are undergoing significant transformation. And last year, the human toll of that change became impossible to ignore.

According to the Australian Bureau of Statistics, the finance industry shed over 30,000 jobs in 2024 alone. Staffing levels dropped from 561,900 in November to just 526,300 by August, marking the sector’s most significant contraction since 2017. As Australia’s financial giants look to cut costs, restructure services, and shift toward digital-first business models, workforce reductions have become a central, if painful, part of the strategy.

Yet, while numbers may help balance the books, they don’t tell the full story. Behind every workforce disruption is employee impact, and a growing need for finance leaders to manage change with both commercial acumen and care.

A sector under pressure

It’s no secret that banks are being asked to do more with less. The sector, while still profitable, is operating in a climate of persistent uncertainty. Major banks reported a combined $29.9 billion profit in FY24, a drop of 5.7% from the year before. Return on equity has dipped, while market analysts demand leaner operations and higher returns amid ongoing macroeconomic instability.

Meanwhile, investment in new technologies, particularly AI, is accelerating. Generative AI is now being embedded across servicing and communication functions, promising significant cost savings and operational efficiency. But that same transformation is also contributing to job losses, offshoring, and a growing gap between the industry’s future and the capabilities of its current workforce.

As the Finance Sector Union (FSU) notes, there’s been a clear pivot to lower-cost, overseas talent and automated solutions. This, while arguably strategic, raises major questions around accessibility, service quality, and the long-term social licence of Australia’s financial institutions.

The cost of transformation

Cost-cutting through job losses may deliver short-term gains, but it can also inflict long-term damage. For financial services professionals who’ve built their careers in a sector now shifting beneath their feet, the experience is destabilising. Many find themselves navigating redundancy or redeployment for the first time, unsure how to reframe their experience in a job market increasingly shaped by tech, automation and agile operating models.

At the same time, employees who remain face uncertainty, morale challenges, and the pressure of doing more with less. For HR and business leaders, this creates a new mandate: to balance business transformation with empathy, fairness, and a commitment to responsible leadership. This is where career transition and outplacement coaching come in. 

Why outplacement coaching matters in finance

Outplacement is no longer a passive or reactive process. Done well, it is a proactive strategy that supports individuals and strengthens organisations through change. In a sector as reputationally sensitive and people-driven as banking, the value of professional, structured outplacement support is immense.

Here’s why it matters now more than ever:

1. Protecting brand and trust
   Banks are built on trust. Offering meaningful outplacement support demonstrates a commitment to doing the right thing, even during difficult times. It sends a powerful message to customers, regulators and remaining staff.
   
   
2. Reducing risk and disruption
   Restructures can trigger confusion, fear and disengagement. Outplacement provides clarity and confidence for impacted employees minimising reputational damage, reducing legal risk and helping people move forward constructively.
   
   
3. Accelerating redeployment
   With the right support, redundant employees can find new roles faster whether inside the sector, in adjacent industries or through reskilling. Outplacement coaching equips them with tailored guidance, job search strategies and confidence to take the next step.
   
   
4. Supporting a changing workforce
   As the sector becomes more digital and global, traditional finance roles are being redefined. Outplacement coaching helps employees reframe their skills in line with new market demands, especially for mid-career professionals facing tech-driven role disruption.
   
   
5. Preserving culture during change
   How a company handles departures can define its internal culture. When people leave with dignity and direction, those who remain are more likely to feel supported and engaged creating a healthier environment for future transformation.

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Change done right

Large-scale change is now a constant within Australia’s banking and finance sector. From shifting profit margins to rising digital expectations, the pressure to evolve is real, and will only intensify in the years ahead.

But progress shouldn’t come at the expense of people.

By partnering with career and transition outplacement coaching providers, finance leaders can ensure their organisations evolve with integrity supporting those impacted, safeguarding brand equity and preserving the trust that has long defined the sector.

In a high-stakes, high-scrutiny environment like banking, how you manage your exits matters just as much as how you make your hires. And in the end, leading people through change with care isn’t just good culture, it’s smart business.

We’re here to help if you’re looking for thoughtful, people-first outplacement support. Get in touch with our team to learn more.