Will We Lose Banking Jobs to Technology?

According to Lisa Gray, the banking industry would shrink over the next 20 years as technological advances become more efficient. Gray said these developments would result to a significant reduction of jobs in the banking sector.

NAB’s personal banking head said that consumer’s demand for credit has reached a plateau in the last year and inquiries for housing loans were also at an all-time low.

According to Gray, the current banking industry employs tens of thousands of employees. In the future, however, this huge workforce would be reduced to handfuls of thousands of employees.

Because of the technological developments, there is no need for a bigger workforce but banks would still be able to offer more value for customers.

The four largest banks in the country include NAB, Westpac, Commonwealth and ANZ. Together, these banks have more than 140,000 employees.

Gray, however, was quick to dissipate concerns that the number would not shrink in the next few years. She cautioned that within the next 20 years, there would be a need for the banking sector to streamline its operations.

She also cited that as more people are used to personal banking on a digital level, technology would be able to provide more value for them.

Gray made those bold statements when she appeared before the Trans-Tasman Business Circle lunch.