Bendigo Bank's AI Partnerships Will Cut Hundreds of Jobs, Union Warns Government
Bendigo Bank announced partnerships with Indian IT provider Infosys and American company Genpact on Thursday, accelerating a cost-cutting program that the Finance Sector Union estimates will eliminate hundreds of positions across the bank.
The seven-year Infosys deal and six-year Genpact contract will support Bendigo's Productivity Program through 2030. The bank said the partnerships will improve processing speed, customer onboarding, and risk management for its 2.9 million customers.
The bank acknowledged the partnerships will affect workers in technology and business operations but declined to specify how many jobs are at risk. The union called this silence a failure of management responsibility.
"The fact that Bendigo Bank cannot say how many jobs will be impacted inspires zero confidence that management understands the full ramifications of what they are doing," the Finance Sector Union said.
Where the cuts will land
Technology divisions will face the first wave of reductions in coming months. The union identified other vulnerable areas:
- Lending assessment and fulfilment
- Customer processing and wealth operations
- Contact centre
- Financial crime operations
- Business and agribusiness divisions
- Mortgage support and customer remediation
Bendigo Bank chief executive Richard Fennell said: "Decisions that impact our people are never easy. We acknowledge this will be a challenging time for our people, and we are committed to leading these changes with compassion, care, and respect."
Government regulation under scrutiny
The union called on the federal government to reverse the partnerships, citing Australia's weak AI for Government approach. The Australian government has committed to ensuring AI adoption is "transparent, safe and responsibly managed," but the union said current policy fails to protect workers.
Julia Angrisano, the union's national secretary, said: "We are now seeing in real time the disastrous consequences of a complete lack of AI regulation, and Australian workers are paying the ultimate price."
The union also raised data security concerns, warning that moving customer information to offshore service providers creates risks for sensitive financial data.
Part of a broader trend
Bendigo's move follows job cuts at other major employers. Atlassian cut staff in March, while Telstra and Accenture made reductions in February. Bendigo also closed 10 branches across five regional communities last June.
The bank's shift away from its community banking identity troubles the union. "The idea of Bendigo Bank being a community bank is now dead," Angrisano said.
For government officials evaluating workplace policy and AI for Finance, the Bendigo case illustrates the gap between stated AI governance principles and corporate practice in Australia's financial sector.
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