Thousands of Jobs Under Threat as Banks Embrace Artificial Intelligence
- New technologies mean that banks could make vast savings in compliance but at a risk to jobs.
Industry experts have warned that thousands of jobs could be put at risk as the world’s largest banks embrace artificial intelligence systems to help meet ever-growing regulatory demands, according to a report in the Financial Times today.
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Compliance
In an interview with the FT, Richard Lumb, head of financial services at Accenture, said that new technologies mean that banks could make vast savings in compliance. He also estimated that “thousands of roles” in the banks’ internal policing could be replaced by automated systems.
He added: “We are seeing work with clients today which is very much around big data and robotic process automation, where in compliance - take anti-money laundering - you can take out thousands of roles. That is coming quite quickly now and that will sweep across the industry.”
He highlighted the fact that many of the jobs created by banks in recent years for compiling and checking data on customers and transactions had already been moved offshore to lower-cost countries. In the next wave of automation they will simply disappear.
“Companies have really thrown bodies at this to deal with the demands of the regulators. They have had no option. But now we are shifting from a revolution of labour arbitrage and offshore to a revolution of automation around this.”
According to Citigroup estimates, the largest banks, including JPMorgan and HSBC, have doubled the number of people they employ to handle compliance and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term which is now estimated as costing the banking industry $270 billion a year.
A report entitled “digital disruption” produced by Citi this week also said there was a “huge cost take-out opportunity for financial institutions” from the fast-growing area of regulatory technology (regtech).
Many banks have heavily invested in this area in response to the crackdown by regulators following the financial crisis. European and US banks have paid more than $150 billion in litigation and conduct charges since 2011, according to Citi’s estimations.
KYC
Citi concluded that banks would ultimately benefit from pooling their resources in compliance. “Over the longer term, a nationwide Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) utility could be beneficial to the whole of society, and many regulators and governments are working towards this ideal.”
Industry experts have warned that thousands of jobs could be put at risk as the world’s largest banks embrace artificial intelligence systems to help meet ever-growing regulatory demands, according to a report in the Financial Times today.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
Compliance
In an interview with the FT, Richard Lumb, head of financial services at Accenture, said that new technologies mean that banks could make vast savings in compliance. He also estimated that “thousands of roles” in the banks’ internal policing could be replaced by automated systems.
He added: “We are seeing work with clients today which is very much around big data and robotic process automation, where in compliance - take anti-money laundering - you can take out thousands of roles. That is coming quite quickly now and that will sweep across the industry.”
He highlighted the fact that many of the jobs created by banks in recent years for compiling and checking data on customers and transactions had already been moved offshore to lower-cost countries. In the next wave of automation they will simply disappear.
“Companies have really thrown bodies at this to deal with the demands of the regulators. They have had no option. But now we are shifting from a revolution of labour arbitrage and offshore to a revolution of automation around this.”
According to Citigroup estimates, the largest banks, including JPMorgan and HSBC, have doubled the number of people they employ to handle compliance and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term which is now estimated as costing the banking industry $270 billion a year.
A report entitled “digital disruption” produced by Citi this week also said there was a “huge cost take-out opportunity for financial institutions” from the fast-growing area of regulatory technology (regtech).
Many banks have heavily invested in this area in response to the crackdown by regulators following the financial crisis. European and US banks have paid more than $150 billion in litigation and conduct charges since 2011, according to Citi’s estimations.
KYC
Citi concluded that banks would ultimately benefit from pooling their resources in compliance. “Over the longer term, a nationwide Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) utility could be beneficial to the whole of society, and many regulators and governments are working towards this ideal.”