AI Adoption May Cut 200,000 European Banking Jobs by 2030
More than 200,000 jobs could be lost in Europe’s banking sector by 2030, according to an analysis by Morgan Stanley. A report published by the Financial Times says that the adoption of artificial intelligence and the closure of bank branches may reduce the combined workforce of 35 major banks by nearly 10 percent. The report was cited by TechCrunch.
The analysis notes that the most severe impact will be felt in back-office operations, risk management, and regulatory compliance, where algorithms are capable of analyzing data more quickly and efficiently than humans. The report estimates that productivity gains in these areas could reach as high as 30 percent.
This trend is not limited to Europe. In the United States, Goldman Sachs has warned of hiring freezes and job cuts through the end of 2025 as part of its AI-driven strategy.
Some banks have already begun taking concrete steps. Dutch lender ABN AMRO plans to reduce its workforce by one-fifth by 2028, while Société Générale’s chief executive has stated that “nothing is untouchable.”
However, cautioning against unchecked transformation, a JPMorgan Chase executive warned that new bankers entering the industry without a strong foundational education could pose risks to the sector in the future, potentially leading to negative long-term consequences. The ongoing shift is also increasing pressure on policymakers to strengthen social safety nets and expand reskilling and retraining programs.
DBTech/BMT/OR
