Automation and robotic processing practices will destroy as much as 30% of jobs in the global banking sector over the next 10 years, according to Citigroup. In the United States, banking workforce will be reduced to just 1.8 million employees by 2025, down from 2.6 million in 2015.
A 112-page report, “Digital Disruption,” predicted that the employment in European banks will be cut far more sharply.
Nearly 85% of transactions can now be carried out at an ATM or online banking, customers go to banks only to resolve complex matters. People can now deposit checks using a smartphone or digitally fire off cash to friends.
The downsizing of the bank workforce is about to accelerate as more technology takes over jobs that humans have traditionally performed. At the end of the day, customers will be the big beneficiary, but those working in banks will turn out to be the losers.
But reports says some U.S. large banks are resisting employing robots. They are investing large sums of money in digital technology now, but Citi thinks that will change soon, especially given the sluggish business environment for traditional banks and the transformative power of new technology.
According to management consultancy AT Kearney, robotic software costs one-third as much as an offshore employee — and one-fifth as much as onshore staff. In China, Citi says, some internet companies are carrying out most of the jobs of banks. “In a branch-heavy retail bank around 65% of banks’ staff are doing processing work that could be automated in the long term,’’ states the report.
According to Business Spectator, the Australia and New Zealand Banking Group (ANZ) used robots and reduced its workforce from 40 to two in the case of payments process. “We have seen tremendous support from the floor as robots are used to augment human capabilities and free up people to do higher value work,’’ Simen Munter, ANZ general manager for group hubs, told the magazine.