Technological efficiencies will result in the biggest reduction in headcount across the U.S. banking industry in its history, with an estimated 200,000 job cuts over the next decade, Wells Fargo & Co. said in a report. The $150 billion annually that the country’s finance firms are spending on tech — more than any other industry — will lead to lower costs, with employee compensation accounting for half of all bank expenses, said Mike Mayo, a senior analyst at Wells Fargo Securities LLC. Back office, bank branch, call center and corporate employees are being cut by about a fifth to a third, with jobs related to tech, sales, advising and consulting less affected, according to the study…..
Tech forecast to destroy more than 200,000 US bank jobs
Source: Financial Times, October 2019
US banks will cut more than 200,000 jobs in the next decade as robots and other technology bring about the “greatest transfer from labour to capital” the industry has seen, a report by analysts at Wells Fargo claims. …. Individual banks have predicted that machines could replace thousands of jobs, most notably Citigroup chief executive Mike Corbat, who said “tens of thousands” of call centre workers could be replaced, and former Deutsche Bank boss John Cryan who warned in 2017 that as many as half the bank’s 97,000-strong workforce could go. ….