"People working at the front and back offices of banks are going to have wildly different experiences with AI, says Sopnendu Mohanty, the group CEO of the global advisory and investment firm GFTN. He told Business Insider that the disruption posed by AI will depend on whether one works in a bank's front, middle, or back office. "Front is all for the customer. The middle is all for the bank, and the back is just for processing all the activity," Mohanty said."
"Mohanty predicted that AI will increase the number of front-office jobs, including roles in investment banking, sales and trading, and corporate banking. He said he also expects the middle office, which handles a bank's risk management, financial controls, and compliance, to benefit from AI. "The middle office is all about internal productivity. That definitely gets better because the AI tools will make them work better and more efficiently," he continued."
AI will have divergent effects across bank functions: customer-facing front-office roles are likely to grow, including investment banking, sales and trading, and corporate banking. Middle-office functions that handle risk management, financial controls, and compliance will benefit from AI-driven productivity and efficiency improvements. Back-office functions responsible for processing activities such as information technology, human resources, and trade settlements face substantial reductions as automation sharpens routine task execution. The overall impact on banking employment depends on specific functions, with customer-facing positions expanding, internal-control roles becoming more efficient, and processing roles contracting.
Read at Business Insider
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