Wells Fargo predicts massive wave of job losses in the banking sector

The banking sector has played a significant role in the US economy over the years but analysts say that thousands of frontline workers in the industry could lose their jobs or find a lesser role to play as automation takes over in the banking sector. Wells Fargo analysts predict that nearly 100,000 positions could vanish over the next five years as US banks invest in digital banking and other technologies. The job roles that are predicted to vanish are branch managers, call center employees and tellers. Instead, artificial intelligence, cloud computing robots will play a larger role in managing day-to-day banking functions like accepting payments, detecting fraud and approving loans. 

The analysts said that this could be the biggest reduction in the US bank headcount in history. Consumers should expect fewer bank branches across the country and the ones that remain could shrink in size. "Many branches were shut down during the pandemic and will likely remain closed. Future mergers will likely reduce branches too", Wells Fargo added in the report. 

Source: CBS News