Deutsche Bank to Replace 18,000 Workers with Robots

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Deutsche Bank plans 18,000 jobs cuts in robot strategy called "Operations 4.0".

Operations 4.0 Underway

Deutsche Bank says Operations 4.0 is already underway.

The plan is to Replace 18,000 Jobs With Robots.

Mark Matthews, head of operations for Deutsche's corporate and investment bank, told Financial News that machine learning algorithms "massively increased productivity" and "redistribute capacity."

The London-based news organization said that Deutsche is pushing to "automate large parts of its back-office" via a new strategy called "Operations 4.0," as part of its $6.6 billion savings initiative over the next three years.

Matthews told FN that the machine learning tools helped to save "680,000 hours of manual work" and that it "so far used bots to process 5 million transactions in its corporate bank and perform 3.4 million checks within its investment bank."

In what insiders called a surprising move, the bank this summer said it will keep the bulk of its equity research department despite eliminating the bulk of its stocks sales and trading division.

Why stop at 18,000? Please consider my 8 step proposal to get rid of everybody.

Just Fire Everybody

  1. Who needs proprietary equity traders? Fire them all. Machines do all the trading anyway.
  2. Who needs stock analysts? Let computers determine the "Strong Buys".
  3. Who needs credit analysts? Computers already do the scoring.
  4. Derivatives? What a mess. Unwind them all and stay away. Fire everyone involved.
  5. Real Estate Appraisals? That's what Zillow's for.
  6. Credit cards processing? Outsource 100% of it.
  7. Statement processing? Outsource that too.
  8. Loans? Let computers decide which loans to make. Then keep none of them. Instead, securitize 100% of them.

Mike "Mish" Shedlock

Comments (43)
No. 1-19
stillCJ
stillCJ

Editor

Real estate appraisals and stock analysts - the robots could not possibly do a worse job than the humans.

Dyleck0680
Dyleck0680

I am looking at how those things are implemented in other big bank. Just wait until it fails (and one day it will big time). This is going to be fun.

Tony Bennett
Tony Bennett

#9 CEOs

Do banks REALLY need to keep them around? At 10s of $millions / yr?

Especially, when a typical Board Meeting goes something like this -

CEO: Can I have a raise of hands of all in favor of stock buyback / dividend proposal? Good. Lets break for lunch. Everyone remember Tee Time set for 1:00.

JonSellers
JonSellers

6 & 7 are already done by computers. You could pull this off with just a few simple regulatory changes. This is all just finance stuff. The world would be better off if these folks got real jobs and produced something.

Country Bob
Country Bob

@Mish Editor ... so you have been retired for awhile now, and there is nothing wrong with that. You have your hobby taking photos at national parks, and there is nothing wrong with that either.

But the list of things you suggest should be automated were in fact automated at most big banks more than a decade ago.

Push "1" if you need to have that repeated. Push "2" if you want an automated voice system to tell you your current statement balance. Push "3" to hear your credit card balance. Push "4" to have this voice synthesizer say the same things in Spanish

Country Bob
Country Bob

Anyone else noticing the irony of this post?

At least 30% of Mish's blog traffic in an average week comes from click farms operated out of India. "Comments" get automatically posted out of Mumbai by automated chat-bots following a script.

The bots post "conversations" paid for by political action groups. They have scripts written for Facebook, pre-written comments for WaPo and NYTimes, and slightly different ones for Mishtalk

A lot of the time humans on this blog are in fact arguing with chat-bots in Mumbai. Some are actually arguing, while others (cough) were hired last summer to flush out the bots, track their origins, etc. Its been a wild ride, but our contract only goes to the end of this month

Mish
Mish

Editor

"At least 30% of Mish's blog traffic in an average week comes from click farms operated out of India."

CountryBob,

That blatant lie damn near got you banned. I will not put up with such bullshit.

One more asinine comment like that and you are gone. People will probably cheer.

IF YOU EVER say something like that again - get the F off my site. And I demand an apology NOW!

Mish
Mish

Editor

CB you have 15 minutes to apologize for being an idiot

Germ
Germ

Surely Mish, using a VPN would mean that the true location of where a post has originated from is unknown. I use a VPN (Cyber Ghost) regularly to access US web sites from the UK that would otherwise not let me.

SMF
SMF

Was watching PBS Frontline 'In the Age of AI'. One interviewee opened my eyes when he stated that AI was more a danger to white collar jobs than blue collar jobs, as computer are more apt to do analysis far better. Guess that is quite true.

Felix_Mish
Felix_Mish

Hey everybody, I think we're being too rough on @Country Bob . Let's face it, everyone who posts here is a bit of a blowhard. It's one of the appeals of the place. Bunch of old dogs sitting around mumbling, "Well sir, back in my day...".

His assertion about where the comments come from may have been just a wee bit clueless, but, hey, we all make mistakes, mistakes, misteaks, meestakes.

That said, I know, know, know - yeah, I'm real, real positive - that @Country Bob is actually a bot from Bangalore! Doubt me? Here's the proof: @Country Bob if you're not a bot, reply to this message.

Ah ha! See.

Six000mileyear
Six000mileyear

All those AI efforts sound great, BUT how bad are Deutsche Bank's finances that AI could not prevent or reverse their share price from falling? Having grown up in IBM country, I continue to follow IBM news. Their AI platform, WATSON, performed wonderfully on Jeopardy; however, as a business advisor, it has not really improved IBM's sales and profits over the past ~6 years. AI is still in its infancy stage to be placed on autopilot. AI algorithms are only as good as the humans who programmed them. Garbage In = Garbage Out.

AliceMrs
AliceMrs

Crazy

AliceMrs
AliceMrs

Pff... It’s clear that robots do better. Why not leave a bunch of people out of work? Indeed. The freelance market is booming, and https://periodix.net/ or resource like this will help you quickly find a job to your liking. It's logical. Perhaps the head of the bank will also replace himself with a robot? Well, it will so increase productivity!

Sechel
Sechel

Wall Street back office has been shrinking for decades. Anyone who follows the industry can tell you how it has changed from the 50's, 60's, 70's, 90's till today. This is nothing new and simply part of a larger trend. This is not a robot story. Wall Street has been automating and becoming more efficient in their back office operations for decades. These were never great jobs. In decades past the sycophants would befriend traders at get desk jobs but those days are largely gone as the skill set is more technical and the current crop of traders now largely come out of the top schools.

wendmink
wendmink

That means no customer service. The beginning of the end. Can't help brain dead.

readysetgone
readysetgone

Homeless with suit and red tie..need high class shelters.

Casual_Observer
Casual_Observer

18000 is only the beginning. A couple of companies I work with are in the process of scaling computing to unheard of performance and scale. One of them which use to simulate global warfare exercises on the scale of years will now be able to accelerate their sims for DoD to it in hours and not years. Machine learning is going to think on a level not possible by humans. Automation is coming in a big way to businesses of all kinds not just manufacturing. This is really stuff of scifi shows and movies ahead the next 30 years. Life wont look similar or recognizable because technology innovation is outpacing everything.

Bastiat
Bastiat

Get rid of all the bloggers and replace them with bots!

But seriously from experience 90% of AI is just hype.