KPMG report: Jobs at risk as banks prioritise automation over staff training
The report notes that 82 per cent of banks intend to shrink their cost base by at least 10 per cent by 2030, with around a third aiming for reductions exceeding 20 per cent.
Banking jobs could face widespread cuts as institutions increasingly lean on automation and digital technologies to reduce costs and boost efficiency, according to a recent report by KPMG.
The global survey reveals that 38 per cent of banks are planning to automate processes as their main route to profitability, while 37 per cent aim to digitise core operations.
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By contrast, only 31 per cent of banks are prioritising staff training and upskilling to meet evolving demands, highlighting a shift away from workforce development.
The report notes that 82 per cent of banks intend to shrink their cost base by at least 10 per cent by 2030, with around a third aiming for reductions exceeding 20 per cent.
The changes are expected to be driven largely by automation, intelligent workflows, and greater use of artificial intelligence.
In Kenya, where lenders such as Kenya Commercial Bank (KCB), Equity and Co-operative Bank are aggressively digitising their services, the trend may significantly change how banks hire and manage staff.
Traditional roles, including tellers and call centre staff, face the highest risk, while demand for technology, analytics, and cybersecurity professionals is rising, according to the Central Bank of Kenya.
While automation can deliver immediate savings, the study warns that ignoring workforce development could create long-term gaps.
“Focusing on automation alone may deliver short-term wins but risks leaving organisations without the skills needed to sustain transformation,” the report notes.
Jörg Fehrenbacher, KPMG partner for financial services, highlighted the focus on customer-facing processes.
“We have seen a lot of transformation programs focused on end-to-end process optimisation over the past twelve months. Tellingly, the focus has been not only on digitalising the process, incorporating greater automation and removing manual tasks, but also on cost. The link between operational transformation and cost is clearly top of mind for banks,” he said.
The report concludes that banks most likely to succeed will balance automation with customer needs and workforce planning, rather than relying solely on cost-cutting measures.
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