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AI Will Wipe Out Half the Banking Jobs In a Decade, Experts Say
Experts in the industry say that current advances in artificial intelligence and automation could replace as many as half the nation's financial services workers over the next decade, though it will take a big investment to make that happen. The Mercury News reports: "Unless banks deal with the performance issues that AI will cause for ultra-large databases, they will not be able to take the money gained by eliminating positions and spend it on the new services and products they will need in order to stay competitive," James D'Arezzo, CEO of Glendale-based Condusiv Technologies, said. Intensive hardware upgrades are often cited as an answer to the problem, but D'Arezzo said that's prohibitively expensive.
Speaking to an audience last year in Frankfurt, Germany, Deutsche Bank CEO John Cryan predicted a "bonfire" of industry jobs as automation moves forward. "In our bank we have people doing work like robots," he said. "Tomorrow we will have robots behaving like people. It doesn't matter if we as a bank will participate in these changes or not, it is going to happen." Increased processing power, cloud storage and other developments are making many tasks possible that once were considered too complex for automation, according to Cryan. D'Arezzo, whose company works to improve existing software performance, said the financial industry is being swamped by "a tsunami of data," including new compliance requirements for customer privacy and constantly changing bank regulations. Bhagwan Chowdhry, a professor of finance and economics at the UCLA Anderson School of Management, offers a less bleak view of the future. "Technology will eliminate some jobs that are repetitive and require less human judgment," he said, "But I think they will get replaced by other jobs that humans are better at. Anything that requires judgment is something humans will continue to do. We are not good at multiplying 16-digit numbers, but we're good at judging people and detecting if someone is telling the truth."
Speaking to an audience last year in Frankfurt, Germany, Deutsche Bank CEO John Cryan predicted a "bonfire" of industry jobs as automation moves forward. "In our bank we have people doing work like robots," he said. "Tomorrow we will have robots behaving like people. It doesn't matter if we as a bank will participate in these changes or not, it is going to happen." Increased processing power, cloud storage and other developments are making many tasks possible that once were considered too complex for automation, according to Cryan. D'Arezzo, whose company works to improve existing software performance, said the financial industry is being swamped by "a tsunami of data," including new compliance requirements for customer privacy and constantly changing bank regulations. Bhagwan Chowdhry, a professor of finance and economics at the UCLA Anderson School of Management, offers a less bleak view of the future. "Technology will eliminate some jobs that are repetitive and require less human judgment," he said, "But I think they will get replaced by other jobs that humans are better at. Anything that requires judgment is something humans will continue to do. We are not good at multiplying 16-digit numbers, but we're good at judging people and detecting if someone is telling the truth."
Otherwise it will never figure out how to access the data.
we're good at judging people and detecting if someone is telling the truth.
Hahaha, no. Experienced detectives trying to tell if someone is lying in response to a yes/no question, using their gut instincts, do no better than a coin flip. Also, remember this story posted just a few days ago: multiple forged signatures, and no investigation done before $Millions were already forked over to the scammers. Think about all the stories of scammers who use social engineering to convince corporate officers to wire them $Millions. OTOH, AI (ok, algorithms) has been used in automated fraud detection systems for decades.
Besides, technology being ABLE to replace half of workers is very different from those workers actually being replaced. Many banks are led by conservatives, and won't rush out to replace half their workforce; they'll slooowwwwllllyyy roll it out in test markets for a decade first, maybe waiting for several competitors to announce plans to do so first. Remember how long it took to roll out EMV in the USA? We didn't even get 'chip & PIN', just 'chip & signature'... oh and they got rid of the signature requirement so it's just 'chip' now.
Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.
So now rather than just being able to transfer the money online, I have to go to one of their branches and deal with a bank teller. I really miss being able to use my iPhone to transfer money, for example, to pay back a friend when they pay for a meal with their credit card. BoA just keeps creating more work for their tellers.
And they let you do that without fees? That's how they killed real world banking here in Norway, if you want to pay a bill in cash expect to be charged >$10 in fees for each. About $8 if you've got an account. By mail $0.25. Online, nothing. So 91% of all age 16-79 pay their bills online. Another overview I found suggests 97% by volume. Bank offices are closing left and right or they're going "cashless" with ATMs/deposit/exchange machines and just financial advisers, the people don't touch the money. Traditional tellers are almost extinct here.
Live today, because you never know what tomorrow brings
I work in a credit union. 90% of our jobs are customer facing for people who want to talk with a human instead of using the website or an ATM. There is very little back office. You have loan underwriters, title clerk's, IT, mail, and accounting. All small departments. Big stuff are call centers, tellers, FSRs, etc...
its not AI, its still good expert systems.
No. This is completely wrong. "Expert systems" consist of structured and nested "if this do that" tables hand crafted by programmers querying human subject matter experts. Artificial neural networks can accept unstructured data, and find the patterns and correlations on their own. They are completely opposite approaches.
The revolution in trading is happening because of ANNs, not "expert systems".