AI to Eliminate 200K EU Banking Jobs by 2030
- Thousands of European banking sector workers could face job losses by 2030, according to a forecast by Morgan Stanley.
- This trend is being driven by the increasing adoption of artificial intelligence (AI) and the ongoing closure of bank branches.
- The cuts are expected to disproportionately affect back-office and middle-office roles.
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AI to Impact Thousands of European Banking Jobs by 2030
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The Forecast: 10% workforce Reduction
Thousands of European banking sector workers could face job losses by 2030, according to a forecast by Morgan Stanley. The report, cited by the Financial Times on December 31st, estimates a 10% workforce reduction across the industry over the next five years.
This trend is being driven by the increasing adoption of artificial intelligence (AI) and the ongoing closure of bank branches. Banks are actively seeking to realize savings thru AI implementation and a broader shift towards digital operations.
Which roles are Most Vulnerable?
The cuts are expected to disproportionately affect back-office and middle-office roles. positions in risk management and compliance are also identified as being at risk. Morgan stanley’s analysis is based on a study of 35 banks employing approximately 2.1 million staffers.
“Many banks have quoted efficiency gains coming from AI and further digitalisation to the tune of 30 per cent,” Morgan Stanley stated.
The shift isn’t just theoretical. Banks are already citing AI as a factor in restructuring. For example, ABN Amro announced in November plans to cut around 20% of its full-time staff by 2028. Similarly,Société Générale CEO Slawomir Krupa indicated in March that all areas are under review in his efforts to reduce costs.
Industry-Wide Trends & Expert Analysis
The impact of AI extends beyond banking. Similar changes are being observed in industries like audit, law, and consulting. Though, banks haven’t yet fully realized the efficiency improvements expected from AI adoption.