Global Banking Crisis: A big news related to the world's biggest bank HSBC has come to light. According to reports, this global bank may lay off around 20,000 employees in the coming 3 to 5 years. The biggest reason is the rapidly increasing use of AI (Artificial Intelligence) and automation. If you understand in simple language, the bank now wants to get such work done by machines and software, which was earlier done by humans. This will speed up work and reduce expenses, but will increase the risk to employees.

What is the reason for such huge layoffs?

HSBC has been trying to make its operations smarter and less expensive for some time now. The bank's CEO Georges Elhedery has initiated several major changes since taking over.

• reducing unnecessary expenses
• exit some business
• Rapid adoption of AI and automation

The bank believes that with the help of AI, productivity will increase and costs will reduce. This is the reason why human jobs are now being reduced.

Which employees are most at risk?

The greatest danger is to those who are not directly connected with the customers. i.e:

• back-office staff
• Data Processing and Entry Jobs
• Roles of Global Service Center

These are the tasks that AI can do easily. Therefore, the need for these jobs may decrease rapidly in the coming time.

What is AI changing in banking?

Not only HSBC, the entire banking industry is now shifting to AI. According to the bank's CFO Pam Kaur, AI will be used for the following purposes:

• Customer Service (Chatbots)
• KYC and compliance check
• transaction monitoring
• fraud detection

Its meaning is clear – where earlier many people used to work together, now some software will do the same work.

Is this limited to HSBC only?

No. This is a big global trend. According to reports, banks around the world together may eliminate around 2 lakh jobs in the coming 3–5 years. In this era of digitalization and automation, manual jobs will be the first to disappear.

Is there going to be a global job crisis?

The news of layoffs at HSBC may just be a sign. Experts believe that:

• AI will completely change the job market
• Demand for new skills will increase
• Traditional jobs will gradually disappear

This means that the coming times may be challenging for those who will not update themselves.

What needs to be done now?

This news is definitely scary, but it also gives an indication – the future belongs to AI. Only those who learn new technology will be able to move forward.