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Study predicts Machines to take over 30% of Work at Banks

According to McKinsey & Co, new technologies are poised to sweep through investment banks, relieving many employees of roughly a third of their current workload. Cognitive technologies, applications or machines that perform tasks once requiring human thought, are now so cheap that banks can deploy them across operations facilitating trades or other capital-markets business. The consultants estimate cognitive technologies will free 20 to 30 percent of employees' capacity in units processing trades.

Automation has brought shivers down spines across Wall Street, as workers worry they will be replaced by machines that can compile and sift libraries of data, interpret contracts, and help clients. However, McKinsey's report also hints at the flip side to that scenario. It stated that banks embracing automation will become more efficient, innovative and nimble. But on other hand, competitors failing to make the jump would have risk falling to the wayside.

The report measures the potential to reshape realms like the middle office, where employees take trades from traders, and finance, which verifies prices and generates profit and loss statements. It also examined the extent to which eight banks have adopted technology for their cash equities businesses. The report also looks at the potential for a number of specific technologies to perform an array of tasks including machine learning, natural language processing and robotic process automation.

News Characteristics

Date : Jul 22, 2017
Region : North America
Industry : Capital Markets
Function : Operations and IT
Sub-Function : IT Modernization/Transformation