US banks will slash as many as 200,000 jobs over the next decade if they continue to embrace emerging digital technologies to streamline their operations, according to a study by Wells Fargo & Co.
Bankers have been the biggest investors in technology, with cloud computing and data analytics technologies being their favorite.
Many banking functions are increasingly being automated. Artificial intelligence, for example, can reduce mortgage processing costs by up to 20%, the report noted. With mobile banking becoming increasingly popular, banks are closing their branches.
“Automation can reduce the amount of repetitive work being done by humans, such as data input in a mortgage application,” Yahoo Finance reported quoting U.S. Wells Fargo analyst Mike Mayo as saying.
Considering the report, a fifth of banking jobs are on the chopping block, particularly in departments such as customer service and corporate offices.
“The next decade should be the biggest decade for banks in technology in history. You’re about to see the biggest capital for labor swap in history,” Mayo said.
Considering the report, US banking consumers don’t dislike talking with chatbots, and many of them are not aware that they are chatting with an AI-powered machine.
No doubt that today robotic technology has turned out to be a new threat to the US job market. Even a recent report from Federal Reserve confirmed that robots are taking away many jobs and decreasing the bargaining power of US workers.