Wells Fargo said that automation could cut 100,000 banking jobs, with back-office and low-paying roles are more likely to be affected
Wells Fargo in Laredo, Texas. (Credit: Billy Hathorn at en.wikipedia.)
Financial services provider Wells Fargo has reportedly predicted that automation could axe around 100,000 banking jobs in the next five years.
The bank has sent a 110-page report to its clients, which details the potential impact of digitisation on Wall Street and its workers, reported Bloomberg.
Last week, Wells Fargo managing director Mike Mayo had discussed findings from the company’s report on Bloomberg TV.
According to Mayo’s forecast, two-thirds of the back-office jobs and a third of front-office roles are most likely to be affected.
Mayo and the analysts’ report said: “Developers are the new bankers. These tend to be higher-paying positions, so it may be the case that while banks reduce headcount, they don’t lower compensation as quickly.
“Progress in the back office remains a slog, noting such employees currently account for about half of all bank employees.
“Some will succumb to technology, but others may require changes in regulation or laws to be fully eliminated. In any event, banks should be able to significantly cut back-office headcount over time.”
In a separate development, Wells Fargo has rolled out Reflect Card, the second card from its new portfolio of consumer credit cards, at a no-annual-fee.
The firm claimed that Reflect is an everyday value card that rewards cardholders for making regular on-time payments, which is an industry-first feature.
Reflect follows the launch of Active Cash Card in July this year, and offers a new type of value proposition not seen in the marketplace, said the company.
Wells Fargo Credit Cards Branded cards and marketing head Krista Phillips said: “Following the successful launch of our Active Cash Card, we continue to stay focused on introducing cards that offer ‘industry-first,’ unique value propositions that suit customers at all stages of their financial lives, including customers who tend to carry a balance.
“Our new Reflect Card rewards cardholders for good financial habits, extending the introductory APR for up to three additional months when payments are made on time, a compelling differentiator we believe consumers deserve.”
Last month, Wells Fargo agreed to pay around $37.3 to settle a civil fraud lawsuit claiming fraudulent overcharging of customers on foreign exchange (FX) services.