Here we go again.
A new Citi Global Perspectives & Solutions (GPS) report on how financial technology is disrupting banks provides another look for us into our rapidly ascending postmodern future. According to the report, mobile distribution will be the main channel of interaction between customers and the bank, which will mean a dramatically reduced need for bank branches. This will lead to the loss of 1.8 million employees between now and 2015, down a whopping 40-50% from its peak in 2007.
An article in Business Insider referencing the report compares it to earlier projections:
That’s in line with former Barclays CEO Antony Jenkins’ recent prediction that pressure from the tech industry “will compel banks to significantly automate their business” and “that the number of branches and people may decline by as much as 50% over the next years.”
The CITI report suggests that as more and more transactions move to mobile, there will be a “rebalancing of staff from transaction-based roles to advisory-based roles,” but I don’t believe such jobs will pay as much. As such, I’m not certain this “rebalancing” will make much difference for those out of work.
This is downside of the Great Horizontal, when it’s viewed from a strictly modernist, top-down perspective. These bank executives know that reduced expenses mean increased profits, so their concern about employees is disingenuous, at best. They will be surprised when faced with the granular investment opportunities that will occur along the bottom of their top-down paradigm, and then the real postmodern disruption of the banking institution will begin. A modernist culture requires banks, but I’m not convinced they will be at all relevant as the twenty-first century moves along.
One thing is absolutely certain: making a living will be completely redefined, and the time to start thinking about that is today.