The “Uber moment” in finance that the former CEO of Barclays warned about recently is already happening — 11 big banks have cut a combined 10% of their staff this year.
Analysis by the Financial Times shows that almost 100,000 banking jobs were cut this year, equivalent to 10% of the combined staff of the 11 big European and US banks that announced cuts.
They include HSBC, Morgan Stanley, Standard Chartered, Royal Bank of Scotland, and Credit Suisse. Barclays and BNP Paribas are expected to add to cuts early in the new year.
The analysis comes just weeks after Antony Jenkins, who until July was CEO of Barclays, warned in a speech that as much as half of banking jobs could be replaced by apps and algorithms over the next 10 years.
It’s true that some of the more traditional branch jobs based on servicing banking customers’ needs for basic transactions such, as deposits and withdrawals, are at risk for being replaced by digital and self-service channels. However, many banks and credit unions are offering additional training to traditional tellers with interest in handling more complex tasks in both branch and enhanced contact center environments. Recent Mercator Advisory Group research indicates that in many of these cases, both customer and employee satisfaction grows, indicating the potential for job enlargement for potentially displaced bank branch workers.
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group
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