Major US banks are preparing to automate 200,000 jobs in the next ten years
https://newsstechh.blogspot.com/2019/10/major-us-banks-are-preparing-to.html
Major US banks are preparing to automate 200,000 jobs in the next ten years
Automation has disrupted many industries for decades, reducing the need for humanitarian workers. That's why companies like Amazon spend millions of dollars to retrain employees to take on new roles, even if these initiatives are relatively rare.
Automation has disrupted many industries for decades, reducing the need for humanitarian workers. That's why companies like Amazon spend millions of dollars to retrain employees to take on new roles, even if these initiatives are relatively rare.
Major US banks are pouring billions of dollars to develop technology to replace the poor jobs in their institutions. This may make banking cheaper, but at the same time there is a workforce the size of a small city that will lose its jobs as a result. A new report by Wells Fargo says US banks will cut more than 200,000 jobs in the next decade. To put this figure in context, Wall Street chief analyst and lead author Mike Mayo told the Financial Times that this represents 10 percent of total banking jobs.
The analyst looked at the overall impact of technology on the banking industry, especially in terms of efficiency. They point out that artificial intelligence can reduce mortgage processing costs by 10 to 20 per cent, and that cloud solutions as well as telemetry-based marketing can save more savings.
It is important to analyze the banking sector because it has the highest spending on technology upgrades for all industries, estimated at around $ 150 billion annually. For this reason most reductions are expected to be in back offices, call centers, front offices and branches. The number of staff in these divisions can decrease from 20 to 30 per cent, paving the way for better ATMs, chat points and software tools that help with decision-making.
However, despite all the talk about using predictive algorithms and big data to make banking better for customers, the report points to the beginning of a race to automate everything in order to stay competitive, which will affect a large amount of workers who cannot easily find other jobs . The Financial Times notes that Citigroup is also looking to cut “tens of thousands” of jobs, and a former head of Deutsche Bank has warned that up to half of its 97,000 employees may be replaced by technology.
