April 23, 2018
AI and Job Security in Financial Services
Artificial Intelligence (AI) can often be a point of contention. On the one hand, AI can help us complete tasks faster, increase the working capacity in nearly every field and create everyday conveniences. On the other, AI proves that it can strip away the need for human involvement in a vast array of job functions including both creative and knowledge-intensive fields.
A recent article in The Victoria Advocate highlights this concern for the banking industry in particular. Former Barclays CEO, Anthony Jenkins, predicts that Fintech, especially in the AI vertical, will eliminate up to 50% of jobs in banking and financial services. Those who preserve their jobs in the sector will potentially reap the benefits of increased profits, enhanced competition and lower operating costs. Other experts in the field think Jenkins’ hypothesis is slightly exaggerated but still believe at least 25% of jobs will either pivot or become obsolete due to AI advancements in the field.
Most major banks already use AI for customer service assistance. As the technology becomes increasingly sophisticated and usable in other financial products, banks will look to hire more people with IT and programming skills to manage AI enabled services.
AI Lowering Barriers in Investing
For most industries, software and technology represent a large portion of investment. Financial services and banking outspend every single industry in tech according to the article.
Despite the pessimistic outlook on job contraction, AI implementation will help customers manage their finances at a lower cost. Investing products and insights are already becoming more accessible compared to economies of the past where only the wealthy could access. On balance, more people of differing economic standings will save more and plan better for retirement.
Human Interaction and Job Security
Although millennials are more accepting toward AI than their older predecessors, people still like interacting with one another for customer support. Those of the older demographics still prefer working face-to-face with tellers in banking. This continued demand for personalized service will most likely stave off the dramatic job loss Jenkins predicts will occur within the next decade.