Meet Kathryn, a woman who dedicated 25 years of her life to her bank, proudly wore the uniform, and looked forward to retirement.
Instead, at 63, she faced the crushing reality of being made redundant—replaced by an AI chatbot she unknowingly helped train.
Her loyalty was met with heartbreak, as she joined thousands of Australians caught up in a wave of job losses that few outside the industry fully understand.
In this article
The Human Face of Automation
Kathryn’s story reflected the painful truth behind Australia’s banking sector upheaval.
She told shared: ‘I was loyal for so long, and this is the thanks I get. I gave my heart and soul to the business.’
Her experience was not isolated—it echoed the struggles of thousands of workers across the country who had seen their jobs vanish while the banks posted record profits.
For older workers, especially those in their 50s and 60s, these redundancies felt like a betrayal, stripping away livelihoods just as they neared retirement.
A Hidden Job Massacre
The job losses unfolding within Australia’s financial sector were staggering.
The Finance Sector Union revealed that the Big Four—NAB, ANZ, Westpac, and Commonwealth Bank—had eliminated 7,885 jobs in 2025 alone.
This was nearly double the 4,665 positions lost the previous year, a statistic that equated to an entire regional town like Cowra or Kingaroy suddenly left unemployed.
'I was loyal for so long, and this is the thanks I get. I gave my heart and soul to the business.'
Each bank carried its own share of the toll.
ANZ announced 3,500 job cuts under the guise of ‘simplifying the bank.’
CBA slashed 164 positions in its technology division in March, while Westpac planned to remove more than 1,500 roles to streamline systems.
Even smaller players joined the wave, with Bendigo Bank axing 158 roles.
Behind the Corporate Curtain
Banks cited ‘digitisation’ and ‘cost management’ as justifications for the sweeping cuts.
But according to Finance Sector Union president Wendy Streets and technology expert Dr Evan Shellshear, AI was not the real driver—corporate greed was.
Research showed that 58 per cent of banking executives admitted flaws in their IT systems disrupted business every week.
Instead of fixing those issues, banks cut experienced staff who bridged the gap when technology failed.
Service Quality on the Brink
Customer frustration with banking services had already been growing.
As Today money expert Joel Gibson warned, removing thousands of human staff meant future customers would struggle even more with complex financial problems.
Job Cuts by Bank (2025)
ANZ: 3,500 roles being eliminated
Westpac: Over 1,500 positions cut
CBA: 164 technology jobs axed (plus 45 more roles initially targeted for AI replacement)
NAB: 410 roles eliminated
Bendigo Bank: 158 additional cuts
Total across Big Four: 7,885 jobs lost in 2025 alone
Chatbots and digital tools often failed when customers needed nuanced advice.
For everyday Australians, this meant longer wait times, endless automated responses, and fewer people who could exercise discretion in helping them.
Profits Before People
The scale of profits made the cuts harder to accept.
Australia’s major banks posted a combined after-tax profit of $15.5 billion in just the first half of 2025, up 3.5 per cent from 2024.
For the full 2024 financial year, the figure reached $29.9 billion.
Banks generating nearly $30 billion annually claimed they could no longer afford to employ thousands of loyal staff.
Did you know?
Banking executives admit IT struggles 58% say their own systems disrupt business weekly, yet they continue cutting the staff who help fix these problems.
The human cost was immense.
For many older workers, the redundancy meant little hope of new employment during a cost-of-living crisis and in an ageist job market.
Privacy and Offshore Risks
The crisis was not limited to job losses.
Wendy Streets warned that the outsourcing of roles overseas placed customer data at risk.
She asked, ‘Customers need to be asking their bank where their data actually sits. Where does it go, if it’s going offshore?’
With call centres often based in the Philippines or India, Australians’ personal financial data could be handled in jurisdictions with weaker privacy laws.
What It Means for Older Australians
The shift away from human-centred banking was felt most strongly by those over 60.
This generation valued face-to-face service, built trust through relationships with staff, and often found digital systems confusing.
The reduction in human staff left fewer people available to provide patient, personalised support.
Info
- Reduced Human Contact: Fewer bank staff means longer wait times and more automated systems when you need help.
- Complex Issues Harder to Resolve: AI chatbots can't handle nuanced financial problems or make discretionary decisions.
- Privacy Concerns: Your banking data may be processed offshore where Australian privacy laws don't apply.
- Branch Closures: With fewer staff, more branches may close, reducing local banking access.
Searching for Alternatives
Customers seeking better service still had options.
Credit unions and mutual banks such as Police Bank, Teachers Mutual Bank, and Community First Credit Union often prioritised personal service over automation.
Owned by members rather than shareholders, they were less likely to replace staff with machines.
Regional banks also offered more community-focused services, relying on local relationships rather than digital systems.
Taking Action as a Customer
Australians were not powerless in this shift.
By asking their banks direct questions—about data, access to human staff, and service standards—customers could push for accountability.
Consumer groups like Choice and the Australian Financial Complaints Authority encouraged customers to document poor experiences, particularly where AI failed.
Example Scenario
- Margaret, 68, from Ballarat found her bank's new AI chatbot couldn't help her understand why her pension payment was delayed. After being transferred between automated systems for 45 minutes, she finally reached a human who resolved the issue in two minutes. Margaret documented this experience and complained to the Australian Financial Complaints Authority, contributing to their case for better customer service standards.
The Value of Human Skills
Despite advances in AI, some skills remained uniquely human.
Empathy, discretion, and understanding of individual financial circumstances could not be replicated by chatbots.
Ironically, the workers being made redundant were often the very people with these irreplaceable abilities.
What You Can Do Right Now
- Ask your bank specific questions about data privacy and human service availability
- Document poor service experiences, especially with automated systems
- Consider switching to credit unions or mutual banks that prioritise personal service
- Support older workers by choosing businesses that value experience over automation
- Stay informed about your rights as a banking customer
Looking Ahead
The rapid changes in banking were not inevitable consequences of technology.
They were deliberate business decisions made by executives who chose profits over people.
Wendy Streets captured the reality succinctly: ‘Our big four banks are in the top 10 of the ASX, they are globally successful companies that make in excess of $30 billion in profit year in and year out. There is no excuse for them to put good, experienced workers on the unemployment line.’
What This Means For You
In 2025, thousands of Australians lost their banking jobs, with older workers bearing the brunt of the cuts. At the same time, the big banks posted nearly $30 billion in annual profits, making the mass redundancies even harder to accept.
Customers were left frustrated as AI chatbots often failed to solve complex financial issues, creating longer wait times and more confusion. To make matters worse, privacy concerns grew as more data was processed offshore in countries with weaker protections than Australia.
For older Australians, this shift meant not only losing trusted staff who understood their needs but also facing a banking system that felt less secure, less personal, and far harder to navigate.
158 more Aussie jobs axed as Bendigo Bank joins NAB, ANZ and CBA in 'destructive' mass redundancies: 'Scrapheap' — Reports on thousands of job cuts across Australia’s major banks, including the story of Kathryn who unknowingly trained the AI that replaced her.
https://au.finance.yahoo.com/news/1...ve-mass-redundancies-scrapheap-021210845.html
ANZ announces major job cuts as part of new strategy—The Adviser — Covers ANZ’s plan to eliminate around 3,500 positions as part of a simplification strategy.
https://www.theadviser.com.au/lender/47553-anz-announces-major-job-cuts-as-part-of-new-strategy
NAB joins ANZ job cutting bloodbath, axing 410 roles in 'shameful' move — Details job cuts at NAB, CBA, and Westpac, highlighting 164 technology roles cut at CBA and 1,500 planned at Westpac.
https://au.finance.yahoo.com/news/n...ing-410-roles-in-shameful-move-013744311.html
Big four banks’ half year results 2025 — Provides financial insights, noting that 58 per cent of banking executives report IT system flaws disrupting weekly operations.
https://kpmg.com/au/en/insights/industry/big-four-major-banks-australia-half-year-results-2025.html
Australian Big Four Banks: Full year 2024 results analysis — Reports the combined profit after tax of $29.9 billion for 2024, illustrating the contrast between bank profits and widespread job cuts.
https://kpmg.com/au/en/home/insight...big-4-major-banks-full-year-results-2024.html
If Kathryn’s story left you thinking about how AI is changing the workplace, there’s another striking example worth exploring.
A major bank recently replaced dozens of call centre roles with a chatbot, showing just how quickly technology can alter long-standing jobs.
This story offers further insight into the real-life impact of automation and the challenges faced by employees navigating these changes.
Read more: Commonwealth Bank replaces dozens of call centre jobs with AI chatbot
Have you noticed a difference in your banking experience since these job cuts began?
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