30 per cent of bank jobs to go in five years: Says former CITI CEO
September 15, 2017
As much as 30 per cent of bank jobs will be gone in around five years, said former Citigroup CEO Vikram Pandit.
Former Citigroup CEO Vikram Pandit recently mentioned that we could lose 30 per cent of bank jobs within just the next five years.
The Indian-American speaking to Bloomberg Television said that the onslaught of automation, artificial intelligence and the arrival of robots will change the way things are done in back offices. All routine work will be done via automation and new age software.
"I see a banking world going from large financial institutions to one that's a little bit more decentralized," Pandit said to Haslinda Amin from Bloomberg. A March 2016 report from Citigroup had also said that 30 per cent of jobs will be lost. While Pandit gave a time range of five years, the CITI report had given an estimate of 10 years.
Pandit had worked at Citigroup for five years before resigning in 2012. He is now the CEO of Orogen Group, a private equity firm founded by him.
Citigroup starting Smart Automation Centre
A July report had mentioned that New York based Citigroup was starting a new Smart Automation Centre with a range of employees who would look after the automation wave hitting the bank jobs. One of the job postings for the centre said: "Must be entrepreneurial, and thrive in environments with a blank canvas that will allow you to flex your intellectual muscle to contribute to building a strategy from the ground up."
Other high profile employees in the field of finance are also speaking about the loss of jobs with the incoming wave of automation and robotics. Goldman Sachs' and JPMorgan are two more companies who are working at automating some of their functions.
"I don't want to get blindsided. It's less the technology, as such, providing a transformative element in the banking industry," said Swiss Bank UBS CEO Axel Lehmann in a Business Insider interview, last month. "It's really alternative business models that has the potential to shake up everything and eat into our cake."