Tens of thousands of employees jobs will be cut over the next 10 years or so at Mizuho Financial Group Inc. This comes at a time when the company makes the decision to digitize its operations. All the megabanks are facing the same thing. With the introduction of fintech and advanced artificial intelligence (AI) applications more and more financial businesses are finding that they need humans less and as a result are cutting their workforce by considerable amounts.
The Mizuho group has developed its own robot that can assist customers that come into branch with any queries they may have about various products and services the company has to offer. This is just one example of how these organisations are digitising their operations using AI. Overall the company is looking to cut its human workforce two around two thirds of what it is currently.
Sumitomo Mitsui Financial Group is also moving with the times and plans to implement touch screen methods opposed to paper slips when depositing, withdrawing, or transferring money. Plans are in place to have this available in all branches within the next three years. Robots may even be used at head office to compile certain documents. By implementing these few things and restructuring the organisation annual savings could be seen that are as much as 100 billion Yen.
The third megabank, Mitsubishi UFJ Financial Group Inc., is also using AI within its business model to offer non-human assisted services. Between the three megabanks, around 33,000 jobs are expected to be lost through the introduction of AI and the digitisation of services. But, it’s a move that can not be avoided. Fintech companies are also pushing hard on the market intensifying competition for other financial firms.
Other countries too are on the same path to digitisation within their financial sector, including the United States, and various places in Europe. Goldman Sachs previously employed 600 traders in its headquarters in the United States. It now has two; the rest of the work is done by automated trading programs that are subsequently supported by 200 computer engineers.
Earlier this year the Bank of America opened three branches that are entirely automated and have no employees in sight. There are plans in place to open a further 50 or 60 like this throughout 2018. Citigroup too, have reported going digital and recently the company announced there could be another 30 percent reduction in the workforce between 2015 and 2025.