Technology makes life more efficient and enjoyable, but it doesn’t come without downfalls. Many financial workers are concerned about being replaced by robots, which raises the question: how will automation impact the finance industry?
Financial industry automation has already started. It began when individuals were directed to different telephone options, instead of being able to talk to a human customer service representative. But, financial automation is likely to increase.
A good example is artificial intelligence (AI), such as Siri. You can have Siri make restaurant reservations and have pizza delivered. Aren’t there numerous small financial transactions that could be automated?
Kiosks and automatic teller machines (ATMs) allow for banks to provide services without paying for human coverage. Continued automation could reduce the number of bank tellers at their physical branches. Is automation a good thing for the finance industry?
You Can’t Stop Progress
There are some paradoxes concerning replacing humans with automation. No man wants to lose his job, but what can he do? Automation is cheaper and more efficient.
What happens when an unstoppable force meets an immovable object?
The other fact is that “No manager will admit that change is going to cause the loss of jobs.” Why? Because men would naturally resist the change.
An Australian study by Robert Half discovered that 46% of Australian CFOs are planning to implement automation efforts within the next year. Robert Half Asia Pacific senior managing director David Jones said, “[i]ncreased automation within Australian workplaces is not about destroying jobs, but rather, adapting to change – which in turn leads to new opportunities.” Workers don’t have a choice in the matter.
The financial industry is very competitive. Customers want the best rates for their accounts, and the most efficient banks will increase their market share. Therefore, financial institutions are forced to automate.
The Robert Half study found that CFOs believed that financial employees would need to accrue new job skills. And, that only makes sense. They might become managers of automated tools.
Every industry faces automation challenges. The finance industry is likely to see skill changes. The hope is that employees can retain their positions by adding new skills. Automation will make finance more efficient.