The report revealed that robots are likely to reduce headcount by 200,000 over the next decade throughout the financial industry in the U.S. Wells Fargo's Mike Mayo spoke to Yahoo Finance's On The Move this week and said banks will be investing significantly in technology over the next 10 years.
"The next decade should be the biggest decade for banks in technology in history. You're about to see the biggest capital for labor swap in history," Mayo said.
Mayo said automation can reduce the amount of repetitive work being done by humans, such as data input in a mortgage application.
You have a lot less errors, you need a lot less people to do it, and the customer is a lot happier too," Mayo said.
His report notes that banks are already in the process of reducing headcount, claiming that U.S. banks have seen the largest decline in employee counts and branch locations in history.
Still, Mayo says the finance industry in the U.S. spends more on tech than any other industry, about $150 billion annually. For a banking industry that has underperformed the market by 70% in this century, Mayo says the investment in technology should pay off in lower expenses over time, particularly for the larger banks.
"This should lead to record efficiency and market share gains by scale players, reflecting our theme, 'Goliath is Winning,'" Mayo wrote.
The 200,000 people who have an account with one of the banks where they work and just lost their job to a robot will be happier ? I doubt that. Funny how all we hear about robotisation is good one way or another. Never any mention of what will become of the laid off people and their families.
Am I to understand that all of the technocrats who create the robots are so completely disconnected from reality to see what is right in their faces, any type of economy cannot work if there are more unemployed people that actual wage earning people ?
I demand from these people an explanation in plain english how can a majority of unemployed people contribute to the economy. Where will the governments get the money from to pay for the food stamps or welfare assistance to the unemployed if there are more unemployed than workers ? Things aren't bad enough as they are ?
BUNCH OF FUC***G STUPID DIMWITS. The only alternative is depopulation. What else ?
I don't see a Yellow Vest movement happening in North America. But that is what we need. The authorities keep inreasing the heat. The damn pot will surely boil over at some point.