Technology is going to hit the job market in the banking sector massively and it is going to cut nearly 30 per cent of the jobs in the industry, according to Vikram Pandit, former Chief Executive Officer, Citigroup.
Projecting the threat behind technology developments, Pandit said that in the next five years several jobs in the banking sector will witness will disappear.
“Artificial intelligence and robotics reduce the need for staff in roles such as back-office functions,” said Pandit.
After exiting from Citigroup, Pandit is now appointed as the Chief Executive Officer of the Orogen Group, an investment firm that he co-founded last year.
“Everything that happens with artificial intelligence, robotics and natural language — all of that is going to make processes easier,” said Pandit.
According to a report published last year by the Citigroup, a 30 per cent cut has been revealed between 2015 and 2025, primarily due to automation in retail banking.
It further revealed that this would cut nearly 770,000 jobs in the United States and Europe will report a loss of one million jobs.
“The banking industry is becoming enormously competitive.I see a banking world going from large financial institutions to one that’s a little bit more decentralised,” added Pandit.