New technologies to impact financial institution workers; 400,000 could lose jobs by 2030, report claims

Although the capital markets workforce saw staff increases in the first part of the  decade, the sector may see serious layoffs due to the adoption of new technologies, management consultancy Opimas writes. As many as 400,000 full-time employees may lose their jobs by 2030. Artificial intelligence and data analytics, especially, can lead to improving efficiency, which will be needed as financial institutions see their margins continue to be squeezed.

The reductions are likely to hit some financial institutions harder than others. Opimas points to the asset management industry which is “under tremendous pressure” because of falling management fees and declining asset inflows. The reductions might impact up to a third of the workforce there.

Moreover, the report points to the shift in employee profiles the changes entail. Due to the uptake of technology, more digital talent will be likely brought in. Even now, there has been a notable increase in hires of AI, data science and cybersecurity specialists. Opimas notes more than a third of all job offers posted by U.S. and European institutions target tech-oriented workers. There is a high demand for people with “double expertise in business, administration or mathematics” as well as STEM specialists.