Banking automation is changing the types of jobs required within financial institutions as customers increasingly use digital and self-service channels for routine transactions. Mobile apps, online banking, ATMs, and other technologies can perform many activities that once required assistance from employees at a physical branch.
While this shift could reduce demand for some traditional banking positions, it may also create opportunities for banks and credit unions to redefine existing roles. Employees can be trained to handle more complex customer needs, provide financial guidance, and support consumers across branch and contact center environments.
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.
How Automation Is Changing Bank Branch Jobs
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.
The increasing use of digital technology will inevitably change the banking workforce, particularly in roles centered on routine transactions. As consumers become more comfortable making deposits, transferring money, checking balances, and completing other basic activities through self-service channels, financial institutions may require fewer employees dedicated exclusively to those functions.
However, banking automation does not necessarily mean that technology will simply replace employees. Banks and credit unions can use automation to shift workers away from repetitive transactions and toward responsibilities that require greater knowledge, judgment, and personal interaction.
Training traditional tellers to handle more complex customer needs could also make branch and contact center positions more valuable to both consumers and financial institutions. If employees can provide assistance that customers cannot easily obtain through an app or self-service terminal, the human component of banking can remain an important part of the overall customer experience.
The transformation of banking jobs therefore presents financial institutions with an opportunity to reconsider how employees contribute to customer relationships. Rather than viewing digital channels solely as a means of reducing staffing requirements, banks can combine technology with employee development to create more capable and flexible workforces. As banking automation expands, successfully redefining employee roles could help institutions capture the efficiencies of digital technology while preserving the value of knowledgeable human service.
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group
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