Expanding
operations of many "Fintech" firms signify the need for banks to step
up their technologies to meet the immense demand of tech in financial services.
Widespread automation and sectorial consolidation could also mean thousands of
jobs lost to technology.
According
to ING Chief Executive Ralph Hamers, employment in finance could decrease and
financial industry workers may need to find work in other arenas that could
play by their strengths. ING's latest plans include technological advancements
that guarantee laying of 7,000 from the 54,000 staff of the Dutch bank.
Profitability
has been questionable for many banks -- both local and multinational -- and
automation is a great avenue to make convenience a selling factor for
consumers. European banks are likely to implement Fintech as they try to reduce
expenses by boosting profitability through technological efficiency.
Hamers said
finance firms are looking to use cloud technologies, AI and voice recognition
to make financial services swifter and less intimidating for other users. Total
investments for financial technologies worldwide has reached up to $1,200bn
with Europe and North America leading in the development of such technologies
according to data from Accenture. EU banks
may need to wait out the storm for a little bit more as new EU regulations may
or may not allow third parties to access customer information despite
authorisation from the latter.
