Branch Rationalisation Drives Banking Job Reductions Over AI
The banking sector’s workforce reduction is primarily attributed to the streamlining of physical branches rather than the increasing adoption of artificial intelligence (AI), according to recent statements from the governor of the Bank of Thailand. This shift is a direct consequence of the significant growth in digital banking services, which has led to a substantial decrease in transactions handled at traditional bank locations.
While local banks are indeed integrating AI and automation technologies to boost productivity, reduce operational expenses, and enhance competitiveness, the immediate impact on employment is not yet as pronounced as the closures of physical outlets. The governor noted that while AI adoption is progressing, it will likely take considerable time before AI-driven disruptions significantly alter employment levels within the financial industry.
Workforce and Branch Trends
Data reveals a consistent decline in the banking industry’s workforce. In the first quarter of 2026, employee numbers stood at 116,721, a decrease from 119,051 at the close of 2025 and 124,458 at the end of 2024. Concurrently, the number of bank branches nationwide continues to shrink. As of April 2026, there were 4,575 banking facilities, down from 4,696 in late 2025, 4,900 in late 2024, and 5,082 at the end of 2023.
Long-Term Workforce Strategy
Financial institutions are actively developing long-term strategies to navigate this evolving landscape. Kasikornbank’s chief executive outlined a workforce strategy integrated into its data and AI initiatives, emphasizing a gradual, step-by-step approach. This long-term journey aims to cultivate both technological capabilities and human intelligence as the bank transitions into a data- and AI-driven organization. The bank’s leadership indicated that this people strategy is not expected to yield broad or immediate workforce impacts.
Preparing for AI Disruption
Other industry leaders are urging for proactive preparation for AI’s future influence. The chief executive of TMBThanachart Bank (ttb) highlighted that AI has the potential to commoditize human skills, experience, and intelligence. He advised business leaders to establish clear people visions for the coming years, anticipating that AI will reshape workforce structures.
Over the next three years, AI is projected to naturally streamline organizations, driving structural changes and redefining job requirements across various sectors. This adaptation is likened to a competitive survival scenario, where embracing AI will be key to remaining relevant. A significant portion of the workforce is expected to gradually integrate AI into their daily tasks, while those who do not adapt risk being sidelined as AI-enabled employees become capable of handling a larger volume of work.
Investment in Digital Transformation
In line with these trends, ttb plans to significantly increase its investment in digital and IT projects. The bank is allocating 3.5 billion baht for such initiatives in 2026, an increase from the 2.7 billion baht invested in 2025, underscoring a commitment to technological advancement and operational efficiency.
