Locals concerned as banking operations move offshore
11 October 2006
When Westpac Banking Corporation announced last week that a further 485 positions would go offshore, and St George Bank also unveiled its plans to source work overseas, it provoked heated reactions nationally as well as within the Highlands.
Notable ‘sore points’ have been privacy and employment.
"When competitive advantage is more important than people, you have to ask whether or not you’re comfortable with the business practises of your institution,” said BDCU’s General Manager, Jan Edwards.
“We have had a number of people defect from other institutions because of offshore outsourcing. It’s something people feel strongly about. People are concerned about identity theft, which is on the increase.”
According to Paul Schroeder, Financial Services Union National Secretary, almost 20 per cent of all Australian banking work could be moved offshore if other financial institutions made similar moves. This would equate with almost 50,000 jobs.
Public concerns over privacy also increased after a well-publicised security breach in June this year within HSBC’s operation in Bangalore.
Financial institutions are bound by National Privacy Principles and the Privacy Act. According to transborder data flow rules, companies are obliged to offer the same privacy protection overseas as they would if the operations were conducted in Australia.
BDCU, formerly Berrima District Credit Union, operates in the Southern Highlands and Tablelands with branches in Mittagong, Bowral, Moss Vale and Goulburn. It offers everyday banking accounts, personal and home loans, financial planning and commercial services.
"If you want a change, go to a Credit Union. BDCU has no account keeping fees, makes decisions locally and employs local people,” said Mrs Edwards.
ANZ was the first to move positions offshore when it established technology operations in Bangalore in 1989. The National Australia Bank, Commonwealth Bank and several other Australian companies currently have offshore workers.
