China's commercial banks are facing a dilemma. On the one hand, the China Banking Association says banks are adding new branches much more slowly than before -- 80 percent more slowly as of last year. But on the other hand, the number of online transactions banks are handling increased by almost 40 percent during the same period. Chinese banks are saving a lot of money, but what's happening to the staff? Our reporter Chen Tong finds out.

Fresh data from the China Banking Association show that about 700 new bank branches were added during 2017, many a fewer than during the previous year. Online banking services saw significant growth, however, with transaction volume rising to 1,700 trillion yuan, a year-on-year increase of 33 percent. The number of individual customers using online banking services also saw a year-on-year increase of 17 percent. Experts believe the phenomenon stems from people's sticky internet behaviors.

CUI LILI, EXECUTIVE DIRECTOR DIRECTOR INSTITUTE OF E-COMMERCE, SUFE "The majority of banking customers were born between 1970 and 1990. Everyone complains about the long lines at banks, and yet some simple transactions can be done on mobile apps or even official accounts on Wechat. Our research this year shows that in some rural areas, especially in the east of the country, everyone is using Wechat or Alipay. And if people there can use online payments, they can use banking apps."

It seems too good to be true -- the increasing popularity of online banking services means the commercial banks can cut a lot of costs. But that's only because it's also forcing them to cut staff. Large listed banks including Citic Bank, China Everbright Bank, Ping'an Bank and China Merchants Bank have all seen reductions in staff during the past year. Human resources specialists believe the situation will continue for the foreseeable future, as the banks continue to optimize staff. As employment at branch service windows falls, employment in more professional categories will rise.

SONG JIE, GENERAL MANAGER G&E HUMAN RESOURCES CONSULTING "Compared with other industries like property and manufacturing, the cost of human resources accounts for a large percent of banks expenses. Creative jobs are still popular at banks and people are eager to compete for them, though, because the business there is complicated enough to provide good training for them."

It's actually a worldwide phenomenon. In 2017, large foreign banks including National Australia Bank, Credit Suisse, and Deutsche Bank have all cut thousands of staff. Citi Bank, at the same time, predicts it will cut 30 percent of its staff in Europe and North America in the next ten years, affecting 1.7 million employees.