Robots will fill 400,000 finance jobs over the next decade



The number of people working in global financial markets will decline by nearly a fifth over the next decade as a wave of artificial intelligence and automation hits the industry, according to estimates by consulting firm Opimas.

The workforce of capital markets institutions will decline from around 400,000 to 1.7 million by 2030, Opimas said in his report. The workforce of the future report, with the investment industry set to be hit hardest as it struggles with both the rise of new technologies and falling fees.

The forecast is a “deep” reversal over a 10-year period in which the financial services industry added around 190,000 employees to help it cope with post-financial crisis regulations. This investment came at a time when profits were starting to decline in the main lines of business.

With companies now equipped to deal with rules affecting trade and investment, Opimas said automation offers financial institutions a clear way to improve efficiency in underperforming divisions.

Axel Pierron and Anne-Laure Foubert, co-authors of the report, said: “Until now, robots have required human intervention and supervision to develop, maintain, train, update and control systems. results.

“Some of the most successful predictions are unlikely to happen in the near term, but there is no doubt that the workforce of the future in capital markets will shrink in size.”

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Opimas predicts that around 157,000 jobs will have been cut by asset managers by 2030. The consulting firm cited the industry’s growing attention to AI and machine learning, where computers are trained in studying large data sets in the hope that they can provide an edge when investing in stock markets.

Recent research from Greenwich Associates, a capital markets consultancy, has suggested that adoption by fund managers in these areas has been slow on the business side of their business. However, companies are starting to adopt these technologies in risk management and pre-trade functions as trading rooms need to catch up.

The move towards automated trading, meanwhile, is expected to result in the loss of 97,000 brokerage jobs, where Opimas said cost-to-income ratios have “remained far too high for too long.”

Traditional investment banking services, including capital markets underwriting and M&A advice, are the least likely to be affected by automation. The need for relationship bankers for large transactions will remain, but Opimas still expects around 8,000 jobs to be cut as banks turn to technology for data collection and analysis; some large companies, including JPMorgan, are already using predictive analytics to help identify the best time for a transaction.

Industry-wide change will create approximately 66,000 technology and data roles, creating a war for talent between financial services and global technology companies.

Pierron and Foubert said, “Experts in AI, data science and cybersecurity, typically drawn to tech companies, are entering the financial industry at an unprecedented rate. Since January 2019, more than 35% of job offers published by American and European sellsides [banks] the institutions specifically target candidates with a technological profile.

To contact the author of this story with comments or news, email Paul Clarke


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