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Is the future of banks in the hands of robots?
- Posted on September 22, 2020
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By Karan Kapoor
The future of banking sector jobs seems to be in threat. The age of AI and the digitalisation is increasing, and software, machines or robots are taking over human jobs. Digitalisation has not started to take over banking jobs too.
Key Points
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Digitalisation is affecting human jobs
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Artificial Intelligence might take over human work by 2030
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As digitalisation helps human comfort, they also hit human’s pockets.
In October 2019, Wells Fargo prominent bank in the USA, in their research report they stated that robots will eliminate almost 200,000 jobs in the banking sector, in the coming 10 years. (Forbes)
The automation of work has changed the world so much. Through time, work that required human touch is currently the task of machines. The tellers in the bank, who used to distribute money in a bank to people, their place is taken over by Automatic Teller Machines(ATMs). As digitalisation is increasing, people are moving towards online banking, and most of their queries are one call away, it has reduced the number of people required in banks. It is possible that soon, the person who is at the reception, taking our final papers for opening an account would not be a person anymore.
The Loss of Jobs to Artificial Intelligence (AI)
The following data depicts the tellers' job has been hit the most after the rise in digitalisation. They will suffer a loss of more than 450,000 jobs by 2030. The Loan officers would also see a loss of 250,000 loss In jobs. Customer Service Representatives will see an almost 220,000 loss in jobs. Financial Managers are the safest, yet their jobs are also at risk of 98,000 jobs. If all the human workforce will be replaced by machines, then who will the managers manage?
Hence, we see a major rise of machines even in the banking sector taking over the human workforce.
The term robots necessarily do not mean machines, and mechanical humans, it can also be interpreted as Artificial Intelligence, or high-grade software and technology.
Mike Mayo, Wells Fargo’s senior analyst, said, the job that will be affected the first would be, tellers and other employees, also the call centre employees who listen to your ATM card grievances.
We are already seeing how Fin-Tech firms and online-only banks are rising. Such banks do not have branches. They have one office(maybe). They have created interfaces online, that can aid us without any hassle, and they invest more money in their server quality and strength than employees. Seeing them, brick-and-mortar banks are also making their online interface more user friendly.
Big Banks are now focusing on offering tech-oriented jobs to new and talented software engineers and developers (LinkedIn). It shows that even the top banks are trying to pave their way into internet banking.
If we look at the USA alone, their banking sector has one of the highest paying jobs. A fresher analyst can earn up to $91,000 per annum, base level. A managing director might earn almost $1 million all-inclusive(bonuses, allowances). If there is digitalisation and automation in these sectors, cost savings can reach higher heights. They could contribute billions to global revenue.
A detailed report by Business Insider Intelligence, they analysed that banks are already moving towards automation of bankers. They are attempting to make AI mimic the employees and help customers. JP Morgan is working on making more space for machine learning.
Automation might change the future of banking. The digitalisation made many people shift from brick-and-mortar banks to an online bank.
Bottom Line
The future of banking seems to be in the hands of software engineers, mechanical engineers. They are the ones making the right interface for the banking system, the correct robotics for the exchange of employees. Software engineers and coders who will code, for the correct functioning for the robots.
The future might be digitised and mechanised, that humans would not have to do anything apart from living.
To learn more about banking technological changes:-
