April 4, 2016
Citigroup predicts 30 percent of bank jobs could be eliminated by 2025 as technology replaces humans. Downsizing banks’ workforce is expected to accelerate now that financial technology has pushed the banking industry to a tipping point.
Investments in fintech exploded to $19 billion in 2015, and more than 70 percent of that investment is focused on improving the customer experience. Branches and associated staff, which make up roughly 65 percent of the total retail cost base of a larger bank, are under imminent threat of elimination.
The acceleration in cuts is likely to be felt first in traditional branch teller jobs as roughly two-thirds of bank employees perform processing work that could be automated.