A new report from Wells Fargo shows that the use of automation will reduce bank employee headcount by 200,000 over the next ten years in the US alone.
Banks are already investing more than makes sense in technology and in automating the most basic tasks, so the next decade should be “the greatest technological decade in history for banks,” says Mike Mayo von Wells.
In particular, automation is being used to reduce the number of repetitive tasks currently performed by employees. For example, software can itself enter the data of a mortgage application provided by a customer who only needs to answer computer questions without anyone interfering. The same software, always alone, could assess the feasibility of the process and the reliability of the customer requesting the loan, possibly within a minute.
Already in recent years, US banks have experienced one of the largest staff cuts in their history, which will increase in the coming years. Currently, the entire financial sector spends more than $150 billion annually on automation.
In particular, the major banking groups will prevail, essentially those that invest more in technology, have real efficiency records and thus profits, and increasingly larger market shares.