Europe’s Banking Sector Faces Major Workforce Shakeup

According to a recent Morgan Stanley analysis highlighted by the Financial Times, Europe’s banking sector is entering a period of considerable upheaval. The report suggests that over 200,000 banking jobs across the continent could disappear by 2030. This would represent about 10% of the workforce at 35 major European banks. The main drivers behind these job cuts are the increasing reliance on artificial intelligence and the closure of physical branches—a trend seen in many parts of the financial services industry.

AI Adoption and Operational Efficiency

The positions most at risk are found in back-office operations, risk management, and compliance. These are areas where AI can process massive amounts of data much faster and more accurately than humans. Morgan Stanley forecasts banks could achieve efficiency improvements of up to 30% through AI and digitization. However, this also means that thousands of roles considered essential until recently might soon become obsolete. While Europe is a focus, the transformation is not limited to this region.

Goldman Sachs, for instance, signaled job cuts and a hiring freeze in the United States as it adopts its own AI initiative, “OneGS 3.0.” This strategy will automate tasks ranging from client onboarding to compliance reporting. Such changes are rippling throughout the global financial sector.

Industry Leaders’ Responses and Risks Ahead

Some banks are already moving aggressively. ABN Amro in the Netherlands has announced plans to cut 20% of its staff by 2028. Likewise, Société Générale’s CEO has emphasized that “nothing is sacred,” implying that even well-established roles could be eliminated. Nonetheless, not everyone in the industry embraces rapid automation without hesitation. Some European banking leaders are pointing out that, if junior bankers are not properly trained and lose their foundation in banking basics, it could create long-term problems for the sector.

Transitioning towards greater efficiency with AI and reduced staffing may seem like the future, but banks must also consider the risks of losing institutional knowledge and undermining training for the next generation of bankers. As financial institutions continue to evolve, striking the right balance between automation and human expertise remains a crucial challenge.

Tags: bankat europiane, inteligjenca artificiale, shkurtime pune, transformimi teknologjik, efikasiteti bankar, automatizimi