Technology AI is becoming a threat to the banking sector by reducing the number of jobs available due to automaton of processes. A study by Bloomberg shows that about 200,000 banking jobs will be replaced by AI in like 3-5 years to come. Though AI possess certain metrics it has setbacks like cutting down job hence making individuals job.
There is increased automation process such as data entry, document verification and customer onboarding. These roles are performed by AI faster and more efficient therefore reducing staff needed for the roles. Banks have also automated customer service by using virtual assistants and chatbots to respond to inquiries revolving around account balances, transaction updates and simple trouble shooting. This help reduce operating costs and increase efficiency but also reduces job entry individuals who target these jobs.
Technology AI has also exerted pressure in bank office and compliance functions whereby AI has tools that can scan large volumes of transaction, detect fraud and generate compliance report faster than human speed. Activities such as moneylaundering, regulatory reporting and risk monitoring were done manually but now through use of technology they have been automated making tracking easier and effective.
Technology AI increase doesn’t necessarily mean all opportunities are lost, it has given room for more qualified individuals who can manage AI systems, ensure cybersecurity, analyze data and ensure compliance by the automated processes. Jobs such as customer service demands for human labor due to their nature of empathy and judgement. The overall trend shows that the baking sector tends to move into more automated processes, and this is likely to render individuals jobless.
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