Antony Jenkins, former chief of Barclay said that half of bank branches - and half of banking jobs - could get the chop over the next decade due to new technologies like blockchain.
According to telegraph.co.uk, in a speech at the Institute of Chartered Accountants in England and Wales, Jenkins spoke that banks will have to face up to extraordinary changes in the coming decades due to new innovations and technologies. He spoke about imminent threats that include the rise of online banking and the demise of branches.
Jenkins believes that the innovation in finance could eliminate the need for maturity transformation – the process by which short-term deposits, such as current accounts and instant access savings, fund long-term loans including mortgages.
In the coming decades, his prediction says that banks might close around half of their branches and that between 20 percent and 50 percent of all bank jobs will be chopped as customers are served via technology. He feared that banks will be hampered by aging computer systems, although keeping up with the latest technology.
Thousands of bank branches have closed in the past decade, and Jenkins expects thousands more to follow in the next 10 years. He believes that the switch away to technology like mobile phones from high street banking is due to customer demand.
Last year November, Jenkins said that banks are approaching an "Uber moment" that could see lenders make huge cuts to staff and branches as they fight to stay relevant and profitable in the face of technology.
Antony Jenkins took charge as chief of Barclay from 2012 to 2015 and was dominated by his efforts to reform the bank’s culture in the wake of the Libor manipulation scandal. Even after his tenure as chief, he still continues to stress the importance of the cultural shift in banking.
