HSBC confirms it: technology is eating operations jobs in banks
A common thread among many banks announcing their results this quarter is an emphasis on technological advancement. Some, like Deutsche Bank and UBS are using technology to cut costs. But HSBC is cutting costs to plump up its tech bill.
HSBC's investor presentation this week revealed an exact correlation between cuts in operations spending at the bank and investment in technology, as per the chart below.
That's not all of it either, as the bank expects there to be an additional $1B in cost saves in 2023. What's driving this focal shift? Likely HSBC's new digitization strategy involving "speed, scale, resilience." The bank says it made 42% more product releases in 2022 than 2021 and that its cloud adoption went from 27% to 35%,
As technology spending is increasing at HSBC and operations spending is falling, guess where jobs are disappearing? That's right.
HSBC's former COO for the global banking and markets business, Nick Reed, recently identified operations alongside risk and compliance as some of the most precarious positions in banking. That appears to be correct.
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