Robots might take your banking job.
At least according to Vikram Pandit, the former CEO of Citibank Group. In an interview with Bloomberg Television, Pandit said that the technology developments in artificial intelligence and robotics could reduce the need for staff in certain banking roles such as the back office. This accounts for a potential 30 percent cut in such jobs in the next five years.
The big internal banks are already using technologies to automate back office operations such as compliance, monitoring, etc. Bank of America Corp.’s Chief Operating Officer Tom Montag said in June the firm will keep cutting costs by finding more ways technology can replace people, reports Bloomberg.
In a March 2016 report, Citibank estimated a 30% reduction between 2015 and 2025, mainly due to automation in the retail banking business. These automation efforts would see full-time jobs dropped by 770,000 in the U.S., and by about 1 million in Europe, Citigroup said.
In an interview with Financial Times, Richard Lumb, the head of financial services at Accenture also estimated that “thousands of roles” in the banks’ internal policing could be replaced by automated systems.