Banking Sector Shortens Business Hours... What About Branch Employees' Remote Work? (Comprehensive)

One-Fifth of Employees at IBK Seoul Metropolitan Headquarters and Branches Work from Home
Commercial Banks Operate Branch Staff Minimally, Citing Practical Difficulties

[Asia Economy Reporter Park Sun-mi] In line with the implementation of social distancing level 2.5 in the Seoul metropolitan area to curb the spread of the novel coronavirus infection (COVID-19), IBK Industrial Bank of Korea has shifted 20% of its headquarters and branch employees to a work-from-home system. While commercial banks plan to expand the proportion of dispersed and remote work if the COVID-19 spread worsens, they express difficulties in including branch employees in the work-from-home scheme.

According to the financial sector on the 10th, IBK Industrial Bank of Korea started operating from the previous day until the 28th by assigning one-fifth of the employees at the Seoul headquarters (main office) and all branches in Seoul, Incheon, and Gyeonggi Province as remote workers. Approximately 7,500 employees, including headquarters and branch staff, are subject to work-from-home. For non-metropolitan areas, the bank has decided to apply the same measures as the metropolitan area when social distancing is raised to level 2.5.

Unlike last September when IBK, having recently established a remote work system, had headquarters employees complete various training programs at home in a training format, this time they perform their usual work remotely as usual. However, branch employees, whose main task is customer-facing, work by completing mandatory online education and training programs.

Currently, IBK Industrial Bank of Korea is the only bank to include branch employees in the work-from-home roster during the application of social distancing level 2.5 in the metropolitan area. Previously, during the second wave of COVID-19 in September, IBK was the only bank to temporarily include branch employees in the work-from-home group.

IBK Industrial Bank of Korea, the Only Bank Including Branch Employees in Work-from-Home
Possibility of Expanding Remote Work Ratio if Level Raised to 3

An IBK Industrial Bank of Korea official said, "According to the original guidelines, only 20% of headquarters staff and 10% of branch staff were supposed to work from home at social distancing level 2.5, but due to the urgent need for preemptive measures to prevent COVID-19 spread, we have strengthened the work-from-home system beyond the plan." The bank had planned that if social distancing is raised to level 3, one-third of headquarters staff and one-fifth of branch employees would work from home, and if the level is actually raised, the proportion of remote work at headquarters and branches may be expanded beyond the plan.

The industry is closely watching the possibility that IBK’s inclusion of branch employees in remote work could spread throughout the banking sector. Among branch employees in commercial banks, voices are already emerging expressing fear of COVID-19 spread and calling for the expansion of work-from-home not only for headquarters but also for branches.

However, commercial banks say that realistically, it is difficult to consider work-from-home for branch employees. Unlike in the past when 20 to 30 people worked at one branch, most branches now operate with 10 to 20 employees, and some smaller branches have only about 10 employees, making it difficult to include branch employees as remote workers, a common concern shared by the banks.

On the 8th, when social distancing level 2.5 was implemented to prevent the spread of the novel coronavirus infection (COVID-19), a notice informing of shortened business hours was posted at Kookmin Bank in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

Banking Sector Closely Watching IBK Case but
"Work-from-Home for Branch Employees is Practically Difficult"

An official from Bank A said, "Branches are already operated so tightly that if even one person is absent, work cannot proceed," adding, "Reducing staff further is a burden for the bank." An official from Bank B explained, "IBK has a low proportion of retail customers, so work-from-home for branch employees is possible, but general commercial banks have no choice but to adopt staggered working hours for branch employees as an alternative."

Some argue that with the expansion of non-face-to-face services, commercial banks could also enable branch employees to work from home by improving branch work efficiency. Even though IBK has many corporate clients, the number of employees per branch and the tasks performed are similar, so if a system is established where colleagues efficiently share the work of remote employees, it is fully manageable.

An official from Bank C said, "Currently, banks are responding by encouraging branch employees to take vacations, but if the COVID-19 situation worsens, they will have no choice but to consider assigning branch employees to work-from-home. Since there is already a precedent, we are closely monitoring the situation."

Meanwhile, commercial banks have shortened their business hours by one hour from June 8 to 28, operating from 9:30 a.m. to 3:30 p.m. The Korea Housing Finance Corporation has also shortened business hours by one hour for nine branches located in the metropolitan area, operating from 9 a.m. to 5 p.m., as the entire financial sector is actively moving to prevent the spread of COVID-19.

This content was produced with the assistance of AI translation services.