look news india
At present, a very harsh and shocking news is coming out from the global banking and financial sector regarding employment and modern technology. London-headquartered multinational bank Standard Chartered has announced a comprehensive and stringent restructuring plan to eliminate more than 7,000 jobs from its global network within the next four years, i.e. by 2030.
According to a special report by international news agency Reuters, the bank has started using Artificial Intelligence (AI) and automation technology rapidly and extensively to increase its operational efficiency, reduce human errors and take profits to record levels. Under this technological transformation, the bank aims to completely eliminate about 15% of the positions in its core corporate departments by 2030.
More than 52,000 employees of corporate departments will be affected.
According to Reuters’ rigorous data and analysis, these affected special corporate divisions of Standard Chartered Bank currently employ more than 52,000 employees around the world, of whom more than 7,000 are expected to be laid off or displaced. It is noteworthy that at present the total workforce of the bank globally is around 82,000.
It’s not cost cutting, it’s technological revolution: CEO The bank’s Chief Executive Officer (CEO) Bill Winters, while clarifying his stand on this tough decision, said that this step is not just a means of immediate cost cutting. Rather, it is an integral part of a much larger and long-term technological transformation of the bank.
While consoling the employees, the CEO also said that those employees who are willing to upskill and progress with time, will be given full opportunity to transfer to new technical positions to be created within the Bank. The bank has clarified that many of the affected employees will also be retrained to operate the AI tools.
India’s Bengaluru and Chennai back-offices will be hardest hit.
This tight rotation of technology and automation is expected to have the greatest and most direct impact on countries and cities where the Bank’s large administrative and technical back-office centers (data processing centers) are located. According to the official statement of the bank, India Chennai and Bengalurufrom malaysia kuala lumpur and poland warsaw Back-offices located in the US will be absolutely at the center of this AI revolution and this is where the largest number of job cuts will be seen.
According to Bill Winters, replacing low-value human resources involved in many routine and manual tasks with modern financial and investment AI algorithms will make the bank’s business model extremely robust and accurate.
Generational change underway in the global banking industry
This tough decision of Standard Chartered Bank is not an isolated or isolated case. It symbolizes a major generational and technological shift currently underway across the global financial world.
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Example of Mizuho Group of Japan: Japan’s leading and top financial institution, Mizuho Financial Group Banks had also said in an official announcement some time ago that they are planning to reduce the total number of their staff in the next 10 years due to increased use of automation and digital banking tools. Huge cut of 5,000 employees Going to do.
Perspective to increase profits and return on equity
Through this major and drastic change, Standard Chartered Bank has further strengthened its long-term profit outlook for investors. With the help of modern technologies, the bank has full hope that its Return on Tangible Equity, which is currently at a normal level, will increase to more than 15% by the year 2028 and will touch the stringent and historical figure of around 18% by 2030.
The bank management says that even in these tough times of global geopolitical tensions and economic uncertainties, the bank will continue to focus solely on high-margin businesses like high-net-worth retail banking and wealth management, where AI tools can provide better financial services to customers by accurately analyzing data.
