Bank CEOs Says Robots Can Replace Half of Citigroup and Deutsche Bank Employees

Investment bank CEOs believe machines will take over ‘lower-value tasks’. 50% of employees are at risk.

The Financial Times reports Citi Issues Stark Warning on Automation of Bank Jobs.

Citigroup has 20,000 technology and operations staff. That about 40% of the banks total number of employees. Those jobs are at risk.

In an FT interview, Jamie Forese, Citi president, commented “We’ve got 20,000 operational roles. Over the next five years could you make it 10,000?”

Deutsche Bank Wants to Chop Half of Its 97,000 Headcount

In a separate FT interview last year, Deutsche Bank CEO commented on the need to Cut Tens of Thousands of Jobs.

“We employ 97,000 people,” John Cryan told the Financial Times. “Most big peers have more like half that number.”

“We’re too manual, which can make you error-prone and it makes you inefficient. There’s a lot of machine learning and mechanisation that we can do.”

Cuts Coming

Cuts are coming and those are not all low-paying jobs.

Mike "Mish" Shedlock

Comments (12)
No. 1-12
Stuki
Stuki

Shouldn’t be too hard, to build a machine with an open slot for Powell to deposit a few billion of freshprint into every month. And which otherwise does nothing useful nor interesting at all.

hmk
hmk

The main beneficiary of AI and robots would be the corrupt crony capitalist political class ruining our country. It sounds scary but could it get any worse than it is now.? If you think about it decisions could be made on the basis of what is good for the country and not for the politician himself. Problem solved...

JonSellers
JonSellers

My new term is technoBS. TechnoBS is anytime someone makes a claim that some technology is going to change the world, when the technology doesn't actually exist in sufficient robustness to meet said claim. The claim that AI is going to lead to the reduction of tens of thousands of jobs in banking is technoBS. if it weren't, it would have already happened. Might it happen in the future? Maybe. But so may flying cars and 3D printed jet-packs. I'm not holding my breath.

Realist
Realist

Technology has already changed banking dramatically, and will continue to change it in the future, which means different jobs, and possibly fewer jobs. The advent of automatic teller machines, and online banking are two such examples. This has reduced the need for human tellers, and has resulted in an increase in financial consultants who assist individuals with loans, mortgages, investments, insurance etc.

WildBull
WildBull

Then came the fountain pen, the type writer, the adding machine, the IBM mainframes, the word processor, the PC ... All the time the economy grew while millions of jobs were shed. Creative destruction at its finest.