World’s banks may halve jobs and branches within 10 years – Barclays ex-boss

LONDON Nov 24 Banks across the planet might cut up to half their jobs and branches in the next ten years as they fight to keep relevant and lucrative in the face of sweeping technological alter, the former head of British bank Barclays said on Tuesday.

“The number of branches and men and women employed in the financial solutions sector might decline by as considerably as 50 percent over the subsequent ten years, and even in a significantly less harsh situation I predict they will decline by at least 20 percent,” Antony Jenkins, who was ousted as chief executive in July, stated in a speech.

For Barclays, that would see amongst 26,000 and 66,000 jobs cut worldwide, and 280-700 branches shut in Britain.

Jenkins had reduce scores of branches and was midway by way of a program to cut 19,000 staff when he was fired in July.

In his speech, titled “Approaching the Uber moment in monetary solutions”, he stated technologies was “an unstoppable force” that would increase buyer service, danger management and efficiency and see new banks grow to be household names.

The quantity of capital getting offered to new start-ups and financial technologies firms meant the industry was not far from causing “real disruption”, he said.

Conventional banks would struggle to implement technology at the identical pace as new commence-ups, and this would drag down returns, he mentioned.

“The barriers to entry are very higher in financial services, so that will permit the incumbents to most likely final longer than in several other industries.

“The risk is that incumbents will be pushed into this utility, capital-heavy function that we’ve noticed in other industries like telecoms. Eventually, that will turn out to be intolerable to shareholders, so we could see consolidation and mergers,” he mentioned, adding that this was most likely to come later in the ten-year period.

He said banks also faced a challenge in maintaining or attracting the ideal technologies employees, who preferred to work in Silicon Valley or in other industries.

“If banks want to really compete for talent successfully, they are going to have to make themselves intriguing locations to work. It cannot just be about the cash, since frankly the cash is not going to be there the way it was ahead of 2008,” Jenkins mentioned. (Reporting by Steve Slater Editing by Kevin Liffey)

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