Robots are set to wipe out the most sought-after (and highest-paying) jobs on Wall Street in the next 10 years
- Jobs in banking and the financial services industries continue to be the most popular in 2019.
- Despite their popularity, a new report predicts that 1.3 million bank workers will lose jobs or be reassigned due to automation.
- Banks have already begun investing in artificial intelligence, and recognize the technology will displace workers.
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Jobs in banking are some of the most sought after for job seekers - but plenty of roles may not be around much longer.
Despite a year of scandals that entangled many of the country's largest banks, desire to work at these companies remain high, according to a new report by LinkedIn. Some of the more high-profile scandals include Deutsche Bank's alleged involvement in a global money-laundering scheme and accusations against Well Fargo's auto-loan and mortgage practices.Nonetheless, Bank of America, Goldman Sachs, Citigroup, Wells Fargo, and JPMorgan Chase remain five of the most popular places to work in 2019. LinkedIn attributes the popularity to banks offering increasingly tech-focused jobs that attract talented software engineers and developers out of college.
"The reality is that if somebody wants to learn finance and strategy, these banks are still the places to be trained and developed," Heather Hammond, co-head of the global banking and markets practice at Russell Reynolds Associates, told LinkedIn.
While job seekers may flock to banks now, a new report revealed a million jobs in banking could disappear in just over 10 years. Job losses or reassignments will impact 1.3 million bank workers in the US alone by 2030, according to a new report from British insights firm IHS Markit. Especially at-risk roles include customer-service reps, financial managers, and compliance and loan officers.
Currently, jobs in banking pay are some of the most expensive in the country. Starting analysts make $91,000 in base pay, while managing directors can earn almost $1 million after bonuses - meaning automating expensive jobs could lead to more cost-saving. In fact, the industry could add a whopping $512 billion in global revenue by 2020 with the use of intelligent automation, according to a 2018 report from Capgemini.
While the use of AI remains sparse, and the technology is still basic, a boost in revenue will increase the adoption of automation, Business Insider analyst Lea Nonninger reports.Unfortunately for job seekers, banks' investment into automation is well under way. In fact, a detailed 2018 report from Business Insider Intelligence noted that banks are already using AI to mimic bank employees, automate processes, and preempt problems. JPMorgan is cleaning thousands of databases to make room for machine learning tech. Citi president Jamie Forese said in 2018 that robots could replace as many as 10,000 human jobs within 5 years.
Laura Barrowman, chief technology officer at Swiss investment bank Credit Suisse, revealed the company is already retraining employees whose jobs have been displaced by AI: "Globally, if you look at cyber skills, I think there is a deficit," Barrowman told Business Insider's panel at the World Economic Forum earlier this year. "There is such a shortage of skills, and you need people who have that capability."