The industry is taking a cautious approach in spite of excitement about new technology. Former Citigroup chief Vikram Pandit — reborn as a fintech evangelist — predicted 30 per cent of banking jobs could be wiped out by AI in five years. Mizuho Financial Group in Japan says it will use AI to replace 19,000 people by 2027 — about a third of its workforce. But where do we stand today?
Almost every big name consultancy has published research on how AI will transform banking. KPMG went one step further with its vision of an ‘invisible bank’ where “enlightened virtual assistants” replace people at all points of customer interaction. Santander introduced red robots to show guests around their Spanish visitor centre in 2010. UBS has Amazon’s digital assistant Alexa on customer service duty, JPMorgan is using robots (the invisible kind) to execute trades and Morgan Stanley has an AI fraud detection team. Just this week, HSBC said it would follow suit by using AI to detect money laundering, fraud and terrorist funding.