The Next Wave of Automation in Banking

Originally a thread on X/Twitter:

1/6: One of the biggest innovations in Banking came with the invention and deployment of ATM machines. The technology is just over 50 years old and now over 10 billion transactions happen through ATMs each year in the US.

2/6: Many of these transactions are incremental (due to low friction) but what’s clear is that ATM machines have replaced the need for 250K+ “equivalent full-time employees” in the US Banking system.

3/6: But, there’s likely another wave of “technology replacing people” in the Banking ecosystem. For instance, it’s amazing how many people still use Banks for simple transactions like depositing checks, taking out cash, or opening basic checking/savings accounts.

4/6: The pandemic is accelerating consumer adoption of technologies like mobile deposits and online bill presentment/payment. And younger generations are more comfortable than older generations opening accounts or applying for loans without any face-to-face interaction.

5/6: The Banking sector employs 1.95MM people today, so while there will be additional hiring into technology roles to integrate and roll out new technologies, it wouldn’t be surprising if the sector lost another 250K+ “equivalent full-time employees” in this next wave.

6/6: Survey to the #fintech community. In the next 10 years, the Banking ecosystem (including fintech) will employ: