Leading finance blogger and fintech commentator Chris Skinner says that a tech-driven revolution in banking will make a third of today’s bank staff redundant over the next two decades.
At the Money20/20 event in Las Vegas this week, Mr Skinner gave a presentation in which he urged banks across the globe to “adapt or die”.
He explained how a third of banking jobs will disappear over the next 20 years as a result of AI-driven automation, and how a high proportion of US banks are still running core systems that are so old the programmers who know how they work are starting to die of old age.
He went on to urge banks to address the lack of diversity on their boards, citing the fact that 94 per cent of senior decision-making personnel have no knowledge of technology.
The event also included a panel discussion on the topic Blockbuster Banking: When is the Netflix Moment?
Panelists from a number of new entrants questioned whether banks will be rendered obsolete by fintech challengers.
Daoud Fakhri, principal retail banking analyst at GlobalData, attended the Money20/20 event and said that distribution channels were hotly debated.
“An interesting point raised was that with consumers no longer primarily choosing their bank on the basis of branch location, brand will become a far bigger driver of choice,” the principal said.
“However, banking being one of the least differentiated industries in this respect may leave incumbents vulnerable to attack.
“For any provider, old or new, to succeed in the new environment, a focus on trust, prioritising customer outcomes ahead of cross-selling, and listening to customers will be essential going forward.’’