Tech­nol­ogy seen do­ing more bank work

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - — Bloomberg News

New tech­nolo­gies are poised to sweep through in­vest­ment banks, re­liev­ing many rank-and-file em­ploy­ees of roughly a third of their cur­rent work­load, ac­cord­ing to McKin­sey & Co. The shift, al­ready stok­ing angst on Wall Street, may take only a few years.

Cog­ni­tive tech­nolo­gies — ap­pli­ca­tions or ma­chines that per­form tasks once re­quir­ing hu­man thought — are now cheap enough that banks can de­ploy them across op­er­a­tions fa­cil­i­tat­ing trades or other cap­i­tal-mar­kets busi­ness. In a re­port Thurs­day, McKin­sey said au­tomat­ing tasks will “free up ca­pac­ity” for staff to fo­cus on higher-value work, such as re­search, gen­er­at­ing new ideas or tend­ing to clients.

“This is re­ally start­ing to take steam and it’s go­ing to trans­form the in­dus­try over the next two to three years,” Jared Moon, a McKin­sey part­ner who co-wrote the re­port, said in an in­ter­view. The con­sul­tants es­ti­mate cog­ni­tive tech­nolo­gies will free 20 to 30 per­cent of em­ploy­ees’ ca­pac­ity in units pro­cess­ing trades.

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