Bank Jobs at Risk as Lenders Prioritise Automation Over Upskilling

Thousands of bank jobs are increasingly at risk as financial institutions shift focus to automation and digitalisation, sidelining workforce upskilling as a strategy for growth.

A new global industry report by advisory firm KPMG reveals that 38 per cent of surveyed banks are prioritising process automation to boost profits, while another 37 per cent are digitising key functions. In comparison, only 31 per cent of banks see upskilling their employees as a viable pathway to productivity and profit growth.

The report underscores the growing reliance on artificial intelligence (AI), intelligent workflows, and digital transformation as banks target significant cost reductions. According to KPMG, 82 per cent of global banks aim to cut their cost base by at least 10 per cent by 2030, with nearly one-third targeting reductions of more than 20 per cent.

“Most banks could probably achieve a 10 per cent reduction in costs through blunt ‘cost-out’ targets or by applying AI to discrete processes. Cutting costs by 20 or 30 per cent, however, will require significant operational transformation,” said Owen Lewis, KPMG’s global lead for banking cost transformation.

In Kenya, the trend is already evident as leading banks such as KCB, Equity, and Co-operative Bank accelerate digitisation. Teller and call centre roles are among the most vulnerable, while opportunities are expected to grow for specialists in technology, data analytics, and cybersecurity. A 2024 Central Bank of Kenya (CBK) supervision report noted a 5.5 per cent decline in clerical staff, even as management and supervisory roles expanded.

While automation offers immediate savings, the KPMG study warns of long-term risks if banks neglect upskilling. “Focusing on automation alone may deliver short-term wins but risks leaving organisations without the skills needed to sustain transformation,” the report cautioned.

KPMG East Africa Partner and Head of Banking Sector, Joseph Kariuki, emphasised that strong governance and leadership will be key to successful transformation. “Banks with clear strategies and centralised governance structures tend to see significantly better results. Full alignment of cost and transformation goals is crucial, particularly when assessing hybrid approaches that combine digital innovation with traditional banking models,” he said.

Industry experts argue that the winners in this transformation race will be those institutions that balance automation with workforce development and customer-centric strategies. Failing to do so, they warn, could undermine resilience and leave banks ill-prepared for future challenges.

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Bank Jobs at Risk as Lenders Prioritise Automation Over Upskilling