The implementation of artificial intelligence in the European banking sector suggests that some 200,000 jobs could be eliminated by 2030 as a result of the automation of certain areas involving repetitive processes.

These predictions stem from an analysis by the Financial Times, “based on estimates from Morgan Stanley,” as “a logical consequence of an industry under increasing pressure to reduce costs and improve profitability.”

According to Morgan Stanley’s forecasts, European banks could reduce their payrolls by 10% over the next five years, representing “approximately 212,000 jobs out of a total of 2.12 million employees.”

The firm bases its predictions on the advance toward digitalization and the subsequent closure of physical branches, as well as the rapid adoption of AI as a tool for gaining efficiency.

The areas where payrolls would be reduced include “the banks’ core services: back office, middle office, risk management, and regulatory compliance,” which involve repetitive processes, “precisely where automation offers the greatest return.”

Morgan Stanley experts point out that this would result in lower structural costs and improved efficiency ratios.

A change in how European banks operate is inevitable due to the incorporation of AI, which will help improve margins and efficiency, “exactly what European banks need to convince investors.”

M.Pino

Source: bolsamania

(Reference image source: Mohamed Nohassi on Unsplash)

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