Bank Jobs Disappearing: The clerks are going missing in this digital decade
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RBI governor Shaktikanta Das highlighted the challenges brought about by digital channels in his foreword to the central bank's Report on Currency and Finance. These challenges necessitate that financial institutions invest in upskilling and reskilling their staff.
«Digitalisation is decentralising financial labour through outsourcing and telework. Automation replacing labour can potentially widen the gap between capital and labour returns, creating a fragmented labour market with low-skill/low-pay and high-skill/high-pay jobs, while middle-tier jobs are displaced by technology,» Das said.
The report also identified a global trend from 2013 to 2019, where the number of support roles in the financial sector decreased, while the number of professionals and technicians increased. This trend is evident in India as well. Additionally, the report noted a turnover rate exceeding 30% in private banks in FY23 due to hiring via digital platforms.
«The rising importance of AI-related skills in the labor market in India is reflected in the growth in AI talent recruitment relative to overall recruitment in 2023 (16.8%) and the highest relative AI skill penetration rate,» the report emphasized.
Despite the emphasis on upskilling, the RBI pointed out that traditional learning and development methods are insufficient for the current
