According to a 108-page report by Citigroup, banks in the US and Europe will cut another 1.7m jobs over the next decade. The reason - tech savviness? Is the higher level efficiency that new tech has brought to banks the cause, or is it because fintech startups focused on alternative lending and payments have taken a chunk of the banks' business? Seems unlikely that it is the latter, as p2p lenders currently account for only 1% of global loans. The positive side of such an employment shift is that we may see these ex-wall street employees build the next fintech startup themselves.
Greg Baxter, global head of digital strategy at Citi, said the trends in western Europe and the US were very different to those in Asia. In the US, new business models had displaced just 2-3 per cent of US consumer banking revenues, and an even lower percentage of US corporate banking. In China “the transition from physical to digital financial flows has been breathtaking”, he said, adding that 96 per cent of China’s e-commerce sales were done without a bank.