Trade and tariff wars, nasty politics, Brexit, climate control, FinTech disruptors, low trading volumes, a recent poor slate of controversial IPOs and geopolitical uncertainty and tensions all take their toll.
Unlike other industries, banks are not weighed down with expensive factories, manufacturing plants or showrooms full of high-priced vehicles. Their biggest expenses are their employees. If banks can replace people with robots and technology, while continuing to do business, profits will soar. To reduce headcount, they have adopted robots, artificial intelligence and technology.
According to the management consulting firm, Boston Consulting Group’s latest report, advances in robotics and technology allow businesses to perform more complex functions at greater efficiency and ease. Automated workforces have huge benefits for banks. While an employee needs lunch breaks, vacation and sick time, bathroom breaks, insurance and health benefits, robots do not. Technology works all of the time without needing coffee breaks, raises, promotions or a pat on the back.
Mike Mayo, a senior analyst at Wells Fargo Securities and author of the report, says that back office, branch, call center and corporate employees will be severely cut. He claims that the robots will bring forth a"golden age of banking efficiency." ” to reducing the portion of national income that goes to U.S. workers over the past 20 years. In plain English, this means that workers are reluctant to ask for significant pay hikes out of fear that their employer will replace them with automation. This trend will exacerbate the lives of people working on Wall Street. Those who remain will be afraid to ask for raises—out of fear that their jobs will be automated.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wells Fargo predicts tech advancements will impact employee trajectoryWells Fargo predicts technology advancement in banking will lead to a huge employee reduction over the next decade, with a projected 200,000 jobs cut.
Read more »
Wells Fargo predicts tech advancements will impact employee trajectoryWells Fargo predicts technology advancement in banking will lead to a huge employee reduction over the next decade, with a projected 200,000 jobs cut.
Read more »
HSBC is reportedly planning to axe 10,000 jobs amid a brutal year for global bank workersThe Financial Times reported on Sunday the bank faced “an increasingly complex and challenging global environment,' citing Brexit and trade conflict.
Read more »
HSBC reported to plan 10,000 job cuts globallyBritish labor union Unite has expressed dismay over reports that the bank HSBC will slash 10,000 jobs worldwide
Read more »
Deutsche Bank says it is too early to comment on details of job cutsDeutsche Bank on Tuesday said it was too early to comment on details of its plan...
Read more »
Republican senators may be 'blown away' like after Nixon if they don't remove Trump, GOP presidential candidate warns'You'll have a very Democratic Senate next year,' former Massachusetts Governor Bill Weld said.
Read more »