Developments in fintech eliminated 8,000 positions

The wider use of online and mobile banking may have made it more convenient for customers, but the developments in fintech have resulted in the reduction of 8,000 jobs and the closing of 1,800 branches in the last four years, a recent study showed.

A study by the Industry Skills Council released Wednesday showed that as of last year the number of financial companies, including banks, securities and insurance firms, increased 0.4 percent or by 12 at the end of 2012 to 2,938. Newly opened asset management firms contributed largely to this growth.

However, while the number of companies has increased, the number of branches has shrunk 9.4 percent during the same period to 1,875. The biggest industry that saw a shutdown on branches was insurance firms with 894 going out of business while 595 bank branches shuttered and 446 securities firms closed

As branch offices closed, 8,033 people lost their jobs. Securities firms saw the largest cut with 6,926 reductions followed by 5,612 bank cuts. Savings banks eliminated more than 2,800 jobs while insurance firms laid off nearly 2,500. Asset management firms downsized more than 1,500 employees.

By Lee Ho-jeong