Recapitalisation: ASSIBIFI president underscores impact on banking industry

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Olusoji Oluwole, the president of the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSIBIFI), discussed the ongoing recapitalization process in the banking sector and its potential impact on workers. He emphasized the need for proactive engagement with stakeholders to protect employees’ welfare amid industry changes like mergers and acquisitions. Oluwole stressed the importance of fair compensation for the workforce and ensuring smooth transitions for workers affected by organizational restructuring.

At a business editors’ conference in Lagos, Oluwole highlighted that the consolidation of the banking sector would likely lead to fewer but more dominant players, resulting in increased demand for specialized skills. However, this could also lead to job displacement in overlapping roles. He called for careful management of employee placement within merged entities and advocated for appropriate compensation packages to reflect the increased capital base of banks.

In addition, Oluwole discussed the growing role of artificial intelligence (AI) in the banking sector, noting its ability to streamline financial analysis, forecasting, and customer service. While AI offers many benefits, such as reducing human errors and increasing efficiency, Oluwole warned of potential issues like system manipulation and fraud. He emphasized the need for robust security measures to protect financial systems and called for journalists to critically assess AI-generated reports before sharing them with the public.

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