BOQ announces job losses, blames digital channel

Yesterday (21 August) saw 400 jobs cut at BOQ, bringing the total redundancies in the last 12 months to 650. BOQ said it plans to convert all 114 of its owner managed branch networks to corporate branches to “simplify its retail distribution channels”. The conversion is expected to be completed by March 2025.

Reasoning behind the decision from BOQ management was put simply: “If customers continue to shift to digital channels, then we will see consolidation.”

“We have long recognised the need to address legacy complexity and structural challenges to change the way we do business. Through the initiatives announced today, we are taking a significant step forward in delivering a simpler, specialist BOQ. We are committed to providing a compelling customer proposition and improving shareholder returns, and these initiatives support those goals,” said BOQ’s CEO and managing director Patrick Allaway.

“Our heritage retail banking operating model that has served us well in the past, is no longer sustainable in its current state in a lower returning environment. The conversion of our branch network will provide flexibility in our product distribution and improve our ability to optimise margins. It represents a substantial change for our Owner Managers, many of whom have long tenures with BOQ. We acknowledge, with immense gratitude, their important contribution to the 150-year history of BOQ and will work closely with them to ensure a smooth transition over the coming months.

“The further simplification of our operating model and management structure will improve productivity and reduce operational risk. This will understandably be a difficult period for our people across the organisation and we are committed to supporting everyone through this process.”

The popularity of digital services has prompted BOQ to review its branch strategy. Announced in the financial year 2024 results, digital transformation is an avenue the bank is exploring, with a quarter of its customers using the new digital platform.

Commenting on the announcement, Finance Sector Union (FSU) national secretary Julia Angrisano went as far as saying that the bank “can’t be trusted.”

“Make no mistake, the move by BOQ to corporatise its bank branches puts them all at great risk of closure – this makes it infinitely easier for BOQ to close branches at the drop of a hat. We’ve already seen them dropping job cuts at a whim yesterday. They’ve proven they can’t be trusted,” Angrisano said.

“This move to corporatise bank branches is bad for customers and bad for communities. BOQ are just leaping from one crisis to another with no clear plan and its workers who are paying the price. Workers have just been told 400 of them will lose their jobs and now their bank branches are at risk – morale is low and there isn’t a happy BOQ worker out there right now. Workers need to be able to have a say about their own future.”

Now, the FSU is calling on the government to look into bank branch closure, saying that regulatory change is necessary to keep community jobs afloat.

“This is why we have been calling on Federal Financial Services Minister Stephen Jones to urgently implement the recommendations from the Senate Inquiry into bank closures report – we need proper regulations around bank closures to avoid situations like this where BOQ can essentially do whatever they like with little to no consultation,” said Angrisano.

“We will be demanding that BOQ commit not to close any bank branches. They have a responsibility to support communities and decisions shouldn’t be made simply to boost their profit and productivity margins.”

According to an ASX release from BOQ: “The significant progress made in BOQ’s digital transformation has enabled BOQ to now simplify its retail distribution channels. BOQ will convert all 114 of its Owner Managed Branch network to corporate branches.”

This decision will:

• Return full ownership of the branch network to the group.
• Align the branch footprint with our digital and relationship banking model, with consolidation.
• Opportunities as our customers continue to shift to digital channels.
• Reduce origination, compliance, and head office support costs.
• Enable group investment through the branch network into business bank growth corridors.

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

To reach Jack, email him at: This email address is being protected from spambots. You need JavaScript enabled to view it.