Digitization: A major threat for banking sector jobs

By Shweta Arya

Digital transformation has taken control over the world and has given an outright risk to many occupations. One area which has regularly been forced to bear this uncertainty has been the — banking and financial sector.

Advancements in technology have led to greater smartphone usage and an increased use of payment wallets (especially after demonetization), internet banking and the simplicity of the bank being a click away has made technology successfully acceptable to the user.

Major banks are pushing the boundaries of innovation by implementing robotics to centralise operations. Conventional jobs like passbook updating, cash deposit, verification of KYC details, salary uploads are also going digital increasing job layoffs. Insurance underwriters, loan officers and credit analysts have a 98% chance of future automation.  

Vikram Pandit, who ran Citigroup during the financial crisis, endorsed this issue with a disturbing figure citing upto 30 per cent reduction of banking jobs in the next five years.

With the increasing advent of technology, digitization of banking sector is inevitable. It has indeed reduced human errors and also increased convenience. But the fact that cyber threats are on the rise, banks are being cautious and the probability of increasing employment in technology, analytics and cyber security sector would see a rise.