Analysts at Wells Fargo predict that over 100,000 banking jobs could be displaced by technology over the next five years.
The bank has sent a 110-page report to its clients, which details the potential impact of digitisation on Wall Street and its workers, reported Bloomberg.
Speaking to Bloomberg TV, Wells Fargo managing director Mike Mayo forecast that two-thirds of the back-office jobs and a third of front-office roles are most likely to be affected.
“Developers are the new bankers. These tend to be higher-paying positions, so it may be the case that while banks reduce headcount, they don’t lower compensation as quickly."
Noting that back office work remains a slog, Mayo says: “Some will succumb to technology, but others may require changes in regulation or laws to be fully eliminated. In any event, banks should be able to significantly cut back-office headcount over time.”