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HSBC confirms it: technology is eating operations jobs in banks

A common thread among many banks announcing their results this quarter is an emphasis on technological advancement. Some, like Deutsche Bank and UBS are using technology to cut costs. But HSBC is cutting costs to plump up its tech bill.

HSBC's investor presentation this week revealed an exact correlation between cuts in operations spending at the bank and investment in technology, as per the chart below.

That's not all of it either, as the bank expects there to be an additional $1B in cost saves in 2023. What's driving this focal shift? Likely HSBC's new digitization strategy involving "speed, scale, resilience." The bank says it made 42% more product releases in 2022 than 2021 and that its cloud adoption went from 27% to 35%,

As technology spending is increasing at HSBC and operations spending is falling, guess where jobs are disappearing? That's right.

 

HSBC's former COO for the global banking and markets business, Nick Reed, recently identified operations alongside risk and compliance as some of the most precarious positions in banking. That appears to be correct.

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AUTHORAlex McMurray Editor
  • Wh
    Whattheruffles
    23 February 2023

    Typical HSBC Jeaneouss moves...cut Operational headcount vs Tech at the same time...so whilst Tech is being built, you've also lost capacity...like punching your head with the left hand and rubbing with the right. To compound their business common sense, getting rid of compliance is like saying 'take the brakes and airbags off my car as they're slowing me down'

  • Re
    Red
    23 February 2023

    For operational jobs the sell by date is almost gone. Were they asleep!! Get off your arses and reskill. Survival is not mandatory

  • Re
    Red
    23 February 2023

    So it seems 2 different trends when comes to tech talent. On one side big tech companies are laying off thousands of engineers and on the other hand banks are hiring in thousands. HSBC's hiring plan indicates a positive trend towards technology employment. Some good news for tech professionals. 

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