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A bank analyst said that in the next ten years, Bank of America will face changing customer behaviors and make adjustments by increasing profits, which will lay off 200,000 jobs, accounting for 10% of the total number of employees.
Wells Fargo analyst Mike Mayo told the Financial Times: “This will be the largest layoff in the history of Bank of America.” If his prediction is confirmed, it will be the country’s this year. Turning point. U.S. BankingIn the past ten years, the number of jobs in the region has remained roughly at the level of 2 million.
The Mayo report found that when banks trim their huge networks to adapt to the new realities of post-pandemic banking, the jobs that face the highest risk are those in branch offices and call centers. This is consistent with the statistics of the US Department of Labor, which predicts that bank teller positions will fall by 15% in the next ten years.
Historically, layoffs, especially those for low-paying jobs, have always been a controversial issue in the banking industry. Progressive politicians usually layoffs. This is an example of a wealthy industry that prioritizes profit over people.
However, the threat of technology companies and non-bank lenders, which have traditionally been bank-led payment and lending businesses, has intensified in the past year, and it is necessary to lay off employees.
“Banks must increase productivity to stay relevant. This means more computers and fewer people,” he said.
Mayo said most reductions can be achieved by reducing consumption rather than reducing consumption over the next 10 years, thereby reducing the risk of a rebound.
The British “Financial Times” first reported this new study, followed by disappointing employment data that showed that the US economy only added 266,000 jobs last month, which was much lower than the 1 million estimate. Structural factors of unemployment, such as accelerated automation, that occurred during the pandemic may have greater resistance to labor recovery than expected. Economic officials said after the report.
Last year, as banks hired employees to meet the sudden demand for labor-intensive mortgage loans and government-backed small business loans, the pandemic increased the total number of employees by about 2%. However, as lenders refocus on efficiency in order to compete more effectively with technology companies that have increased their business share during the health crisis, this trend may be reversed in the short term.
One of the chief concerns of the CEO of JPMorgan Chase is the increased competition from unregulated companies such as PayPal and Amazon to enter financial services. Jamie Dimon Summarized in the annual letter to shareholders last month.
Mayo estimates that banks currently account for only one-third of the entire financing market.
Mayo said: “Digitalization has accelerated, and this has played a role in the power of some fintech and other technology providers.”
Many bank branches that are closed during the pandemic may remain in this state, and even those that are still open may be staffed with fewer staff because each branch is more focused on providing advice rather than facilitating transactions. The report also said that a large number of back-office roles can also be automated, but these numbers are difficult to quantify.
Mayo said his team was twice as large as it was 20 years ago and is responsible for half. Doing more with less money is the new norm for the entire industry.
“If I were to give my kids some advice, I might say that you might not want to get involved in the financial industry,” Mayo said, adding that technology and customer-facing or customer-facing roles may be the only areas that will grow. “This may be a shrinking industry.”
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