An alarming sentence about automation from Bank of America’s tech chief should put Wall Streeters on notice (BAC)

business news

  • Wall Street banks are ramping up spending on technology and hiring more people with tech skills. 
  • Bank of America’s chief tech officer says that the technological shift is happening too fast for folks on Wall Street to adapt. 

Technology is moving front and center on Wall Street, and it has many people worried about their jobs.

Wall Street is ramping up spending on technology and hiring more people with tech skills, especially in trading where profits have been harder to come by and banks are looking to cut costs.

According to data from Coalition, on average the top 12 investment banks decreased headcount in sales and trading near 6% in 2016. Meanwhile, tech spending increased 1% in front office systems, according to Bloomberg reporting. 

JPMorgan, specifically, is on track to spend $9.5 billion a year in technology. And 47% of Goldman Sachs’ recent job listings are in technology, according to CB Insights. 

So that means traditional Wall Streeters need to brush up on their tech skills, right? It turns out that it might not be so simple. There’s a good chance that even if a trader tries to adjust to this shifting landscape, by sharpening his or her tech skills or learning how to read code, they could still lose their jobs.

Bloomberg is running a series of stories on the tech revolution on Wall Street, and in a story by Sarah Ponczek and Dakin Campbell, Cathy Bessant, the chief technology and operations officer at Bank of America, said technology is changing too fast for folks in finance to catch up. 

“Those of us in leadership roles know what’s coming, we’re helping to drive it and know what skill sets we need,” said Bessant.

She added that education in tech needs to start early on for folks in finance. Still, Bloomberg reported that Bessant is “skeptical that on-the-job training will be enough.” She told Bloomberg:

“The kind of skills that we’ll need have to be taught beginning at a much earlier age. Whether you can train the same worker at the same time you’re changing their job remains to be seen.”

Wall Streeters, consider yourselves warned.

Read the full report at Bloomberg >>

SEE ALSO: Goldman Sachs has made a big hire in electronic trading

Join the conversation about this story »

NOW WATCH: This is what separates the Excel masters from the wannabes

Комментариев нет

Добавить комментарий

Этот сайт использует Akismet для борьбы со спамом. Узнайте как обрабатываются ваши данные комментариев.

business news
Trump’s trade fight and the unwinding of a $3 billion bet are clobbering copper

Copper prices on the London Metal Exchange slipped below $6,000 for the first time in a year Thursday. Analysts say trade escalations are weighing on a market already under pressure. An unwinding of a $3 billion long position put pressure on prices earlier this month.  Follow copper in real time …

business news
Trump threatens to slam a massive tariff on European cars, which could cause economic chaos

President Donald Trump on Friday threatened to impose a 20% tariff on imports of cars from the European Union. The move would be a huge escalation of Trump’s ongoing trade conflict with the EU. Trump already hit Europe with steel and aluminum tariffs, angering EU leaders and triggering retaliation. President …

business news
Bitcoin’s rough patch looks like the Nasdaq during the tech bubble — except it’s moving 15 times faster

Bitcoin fell as much as 70% from its mid-December high through its recent early-February low. The cryptocurrency’s price chart mirrors that of the Nasdaq Composite Index during the dotcom bubble era, but there’s a catch. Historical fluctuations in the Nasdaq should provide a template for how bitcoin will trade going …