The Impact of Automation on Jobs in Retail Banking

By IBF Posted 9mth(s) ago Reading Time: A few minutes


Based on research and industry study, middle and back office job roles are currently experiencing the greatest impact in terms of potential job convergence or displacement. 

Many operational roles in retail banking, especially those that involve tasks such as data sourcing, in-depth analysis, and investigation are being augmented as a result of investments in data analytics and automation.

RPA is being used to increase efficiency of transaction processes and relieve the heavy lifting that workers have traditionally performed. Examples of RPA-enabled processes have reduced transactional tasks including the manual transfer of loan information from the front to the back office as well as manual settlement reconciliation

Today, retail banks are moving into the next wave of automation by focusing on redefining the entire customer experience.  They are leveraging AI and advanced analytics to achieve better insights that engage customers, and AI-powered chatbot to provide basic support across digital platforms. 

Customer experience is improved while driving real-time data processing, and greater efficiency is achieved by reducing operational workload.

Highly-impacted roles

The next two graphics provide an overview of the 9 roles that will be highly impacted in retail banking and the implications automation will have on these roles.

The roles of personal banker and product analyst will also be mildly impacted and augmented as a result of automation. 

As the more routine tasks are being automated, the expectation is for Relationship Managers (RMs) to possess an increased depth of knowledge across the FIs product and service offerings.

Many of the specific tasks performed by RMs will be an area of focus for data analytics and automation. The application of advanced analytics (e.g. self-service platforms, chatbots, etc.) will increase the efficiency of RMs by enabling them to serve a larger portfolio of clients as the more routine tasks are being replaced by technology.

The advisory skills of RMs should be enhanced as a result of automation. By removing the administrative components, the RM will be able to spend more time engaging with the client, and perhaps, there may be a wider range of service and offerings that will be made available to clients.

Profile story of a bank employee

“I’ve been in the finance industry for 11 years now since joining the bank in 2007 as a staff processing transactions. Previously, we used to process all transactions – such as foreign exchange and time deposits – coming from branches and other departments as a centralized unit.

Today, the process has been streamlined and most of the transactions can be processed either by the branches or carried out by customers themselves online.

In the last three years, my role has evolved to one that ensures sound governance by using performance matrices and analytics. I’m glad to pick up new skills through on-the-job training and courses, preparing me for future career options.”

Daniel Tong Transaction Service Analyst, Citibank Singapore