Financial Services Companies Could Generate $140 Billion in Productivity Gains & Savings by Modernizing Workforce Technologie...
December 12 2019 - 8:15AM
Business Wire
Productivity gains from augmentation of
workforce could deliver US$117 billion to firms in North America,
with automation cost savings adding US$23 billion more
Financial services companies in North America could unlock up to
US$140 billion in productivity gains and cost savings by 2025 if
they employ new technologies that help improve the efficiency and
effectiveness of their workforces, according to a recent study by
Accenture (NYSE: ACN).
The study — Workforce 2025: The Financial Services Skills &
Roles of the Future — shows that disruptive technologies that
augment human expertise, creativity and skill with real-time
information and new capabilities or automate routine tasks and
processes will change the shape of the financial services workforce
over the next five to 10 years.
According to the study, up to 48% of tasks in the financial
services workforce could be augmented with technology by 2025 to
increase productivity. For example, artificial intelligence (AI)
and other technologies could help financial advisors make
personalized real-time recommendations and help loan officers
determine default risks more accurately. The study estimates that
augmentation could help banks, insurers and capital markets
companies generate productivity gains of US$59 billion, US$37
billion and US$21 billion, respectively. However, the study found
that many firms still lack a coherent and strategic approach to
reimagining customer experiences, work and the workforce for a more
digital and human-centric future.
“There’s a new era ahead for financial firms that see the value
of combining human ingenuity and personal touch with technology
efficiency and precision to create new sources of growth — and at a
time when companies are using automation tools to drive greater
value, responsible leadership is key to building trust,” said
Cathinka Wahlstrom, who leads Accenture’s Financial Services
practice in North America. “This isn’t about cutting costs to
improve the bottom line, it’s about embracing technology to
transform the workforce. Banks, insurers, and capital markets firms
should continue to invest in teaching their staff new skills and
new ways of working.”
With a scarcity of digital, data and cyber skills available in
the market, companies need to make reskilling an imperative, the
study found. Reskilling employees — instead of simply recruiting —
can deliver immediate value. In addition to reducing costs and
capturing efficiencies, augmentation and automation can free-up
time that can then be refocused on high-value work such as
innovation, customer relationships and offering development.
"The leading financial services firms take a holistic,
cross-functional view of the roles and functions in the enterprise
to understand where they can drive the most value — focusing on the
roles best suited to technology augmentation and automation and
that offer the most potential for rapid and sustainable return on
investment,” Wahlstrom said.
The report also notes that financial services firms have made
large productivity and efficiency gains by automating tasks such as
data entry, gathering, and processing as well as account
reconciliation. Going forward, 7%-10% of tasks could be automated,
generating additional cost savings of US$12 billion for banks, US$7
billion for insurers and US$4 billion for capital markets
firms.
“Rather than removing the human touch from financial services,
technology can enable organizations to offer more personalized and
more human experiences at scale and improve their ability to
innovate and grow into new areas,” said Bridie Fanning, a managing
director at Accenture who leads the Talent & Organization group
in its Financial Services practice in North America. “By automating
tasks in both the front and back office, financial services
companies can provide employees with meaningful work and develop
client relationships that are characterized more by human ingenuity
than routine transactions.”
The report concludes that advanced technologies will bring
profound change to how financial institutions manage their
workforces and interact with consumers. Apart from the potential
displacement of some jobs, issues such as how algorithms are used
to make decisions that affect humans and the way employees’ data is
gathered and leveraged in the workplace are beginning to attract
scrutiny from lawmakers and regulators. Against this backdrop,
organizations have an opportunity to turn transparency about people
issues and responsible use of AI and data in the workplace into a
competitive edge.
Methodology
Accenture Research sourced employment data for the North
American financial services sector from O-Net Online and calculated
base cost-saving scenarios for automation and aligned job function
data with specific job clusters. Forecasted changes in industry
employment (growth and replacement of jobs) through 2026 were
calculated using Bureau of Labor Statistics 2017 data, and
projected future costs in dollars per hour and average salary were
calculated using the assumptions of forecasted inflation data from
the International Monetary Fund. The low scenario for augmentation
is based on assumptions derived from the World Economic Forum’s
“The Future of Jobs Report 2018.”
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions — underpinned by the world’s largest
delivery network — Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With 492,000 people
serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20191212005024/en/
Melissa Volin Accenture +1 267 216 1815
melissa.volin@accenture.com
Elzio Barreto Accenture +852 9509 3236
elzio.barreto@accenture.com
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