The bank has sent a 110-page report to its clients, which details the potential impact of digitisation on Wall Street and its workers. Thousands of frontline workers in the industry are likely to find themselves with a shrinking part to play as their jobs succumb to automation over the next few years, according to a report.
Wells Fargo managing director Mike Mayo forecast that two-thirds of the back-office jobs and a third of front-office roles are most likely to be affected in US.
“Developers are the new bankers. These tend to be higher-paying positions, so it may be the case that while banks reduce headcount, they don’t lower compensation as quickly.”
The disappearance of such jobs could parallel the massive contraction in manufacturing work in 1980s and ’90s, according to Wells Fargo. Consumers should expect fewer bank branches across the nation, and those that remain will likely shrink in size.
“Branches will likely show a decline, especially given greater digital banking adoption during the pandemic,” according to Wells Fargo. “Many branches that were closed during the pandemic will likely remain closed permanently [and] new future mergers will likely reduce branches, too.”
Big banks have continued grow over the last two decades, shrugging off the effects of the 2008 financial crisis after being bailed out by taxpayers. The financial sector accounts for 19% of the country’s gross domestic product, up from 13% in 2000. Despite that financial growth, between 2007 and 2018 the nation’s four largest banks reduced staff by a combined 300,000 positions.
