# In a world of automation, what does the future hold for UK financial services workers? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-26 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: The Future of Financial Services in the UK: Automation Trends Meta Description: Discover how automation technology is changing the landscape of the financial services sector in the UK, potentially affecting roles and productivity. Learn URL: https://financedigest.com/in-a-world-of-automation-what-does-the-future-hold-for-uk-financial-services-workershtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/business-woman-group-with-headsets-sbi-300840017-1736837517854-compressed.jpg) _By_ **_James McLeod,_** _VP EMEA, Faethm AI_ The UK has a rich history when it comes to financial services (pun intended). From the issuance of the first ever British banknotes by goldsmiths back in the 17th century, to the present day where [the UK sits atop the pile](https://www.thecityuk.com/research/key-facts-about-the-uk-as-an-international-financial-centre-2020/) as the largest exporter of financial services in the world, we have clearly come a long way. Employees in the financial services (FS) sector account for a huge portion of the UK’s economy, and occupy a huge range of roles that help people and organisations make, invest and manage money;whether they’re exchanging currency and [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks"), granting loans to small businesses, or providing insurance cover. As a nation, we’ve long been one of the leading [innovators globally when it comes to finance](https://www.financedigest.com/innovations-in-finance.html "Innovations in finance") technology, and this dominance looks set to continue thanks to the recent development of and investment in pioneering, industry-disrupting technology. The fintech [era has arrived in big](https://www.financedigest.com/ecb-goes-big-with-50-basis-point-hike-ending-negative-rates-era.html "ECB goes big with 50 basis-point hike, ending negative rates era") fashion, with online-first banks like Monzo and Revolut rapidly gaining market presence. As cryptocurrencies [work their way](https://www.financedigest.com/five-ways-to-keep-your-head-above-water-while-working-from-home.html "Five ways to keep your head above water while working from home") into the mainstream too, it’s clear that technology’s influence on the industry is only growing. Yet despite this, there remains a sense of apprehension from FS [workers in relation to the rise of one specific technology:](https://www.financedigest.com/why-technology-will-free-britains-young-workers-from-presenteeism-in-the-workplace.html "WHY TECHNOLOGY WILL FREE BRITAIN’S YOUNG WORKERS FROM PRESENTEEISM IN THE WORKPLACE") automation. In many instances automation technology is already capable of undertaking significant portions of [financial services workers’](https://www.financedigest.com/post-brexit-uk-workers-can-have-financial-security.html "Post Brexit – UK workers CAN have financial security") roles, because it can quickly and efficiently handle repetitive, process-heavy (and often administrative) tasks that humans often struggle with at a much faster rate. In productivity terms this is great news, but the trade-off presented is that the development of such [tech threatens to displace a number of employees in the near](https://www.financedigest.com/exclusive-nissan-seeks-tech-tie-up-without-renault-as-alliance-nears-end-of-road.html "Exclusive-Nissan seeks tech tie-up without Renault as alliance nears end of road") future. In the short term it could lead to an unemployment crisis, and in the long term in could also create a huge gap between the skillsets demanded of human [workers by employers](https://www.financedigest.com/more-than-half-of-workers-are-open-to-leaving-their-current-employers.html "MORE THAN HALF OF WORKERS ARE OPEN TO LEAVING THEIR CURRENT EMPLOYERS") and the actual skills possessed by prospective employees, which is a concern. **The pressures of technology** This apprehension amongst workers in the FS sector, including insurance, is understandable, as this sense of pressure on their [roles is underpinned by data](https://www.financedigest.com/theres-nothing-artificial-about-the-role-of-ai-and-data-in-the-finance-industry.html "There’s nothing artificial about the role of AI and data in the finance industry "). Our [research indicates that a huge](https://www.financedigest.com/research-reveals-huge-increase-in-employees-feeling-stressed-at-work.html "Research Reveals Huge Increase In Employees Feeling Stressed At Work ") 20.8% of all roles in FS/insurance in the UK are potentially automatable before 2026, whilst 13.6% could potentially be augmented by automation and technology over the same period. Whilst potential doesn’t always necessarily equate to actualisation, these figures still [raise alarm bells for those working in a sector that has persistently turned to technology](https://www.financedigest.com/legislate-raises-3-6m-to-give-startups-smes-the-technology-to-query-and-compare-every-contract.html "Legislate raises .6M to give startups & SMEs the technology to query and compare every contract") to drive productivity and growth. In fact, we’re already seeing this adoption of automation technology come to fruition in some financial organisations, [such as the FSCS](https://www.ftadviser.com/regulation/2021/07/01/fscs-turns-to-ai-to-bring-costs-down/). It recently made the decision to begin [implementing AI and automation to reduce](https://www.financedigest.com/home-start-lincolnshire-implements-flexible-unified-communications-service-to-reduce-costs.html "HOME-START LINCOLNSHIRE IMPLEMENTS FLEXIBLE UNIFIED COMMUNICATIONS SERVICE TO REDUCE COSTS") the time spent on claims handling, a lengthy process that tech can handle far more swiftly and effectively than humans. The results were impressive, with the body [reducing the costs](https://www.financedigest.com/cobots-in-the-financial-workplace-reducing-costs-attracting-talent-and-enhancing-sustainability.html "Cobots in the financial workplace: Reducing costs, attracting talent and enhancing sustainability") associated with claims handling by £9m as a direct result of the use of automating technology. It’s a scenario that reflects a [common reality – that organisations have to take decisions that make the most business](https://www.financedigest.com/5-common-tax-mistakes-small-businesses-make-in-australia.html "5 Common Tax Mistakes Small Businesses Make in Australia") sense. The question however is how they account for the possible human cost of such decisions. **Finding a solution for** [employees through planning](https://www.financedigest.com/workplace-planning-software-cuts-costs-and-improves-employee-wellbeing-and-productivity-a-win-win-for-all.html "Workplace planning software cuts costs and improves employee wellbeing and productivity – a win-win for all") Whilst the current situation may have FS and insurance workers ruminating over a dystopian, sci-fi-esque [‘technology takeover’, we must remember that the human touch will be just as important as technology to both industries in the future](https://www.financedigest.com/technology-skills-and-servitization-a-brighter-future-for-manufacturing.html "TECHNOLOGY, SKILLS AND SERVITIZATION: A BRIGHTER FUTURE FOR MANUFACTURING?"). Firms such as EY for example are [encouraging](https://www.ey.com/en_uk/intelligent-automation-in-financial-services) an approach of “intelligent automation”, combining the strengths of Robotic Process Automation (RPA) and AI with innately human capabilities such as creativity, problem solving and strategic planning. For all that automation technology can offer it’s these skills through which true innovation flows, and it’s fundamentally [important that employees](https://www.financedigest.com/why-is-employee-reward-and-recognition-so-important.html "Why is employee reward and recognition so important?") in FS are encouraged and given the means to remain and work alongside technology, rather than be replaced by it. The main question right now is, does the [industry have the skills pipeline and the innovation mindset needed](https://www.financedigest.com/the-financial-services-industry-needs-to-get-serious-about-cyber-security-in-the-covid-19-era.html "The financial services industry needs to get serious about cyber security in the Covid-19 era") to fully embrace this transition? With the battle for talent in finance and the UK in general heating up, a concerted investment into reskilling and retraining the workforce is [imperative if employees](https://www.financedigest.com/the-commercial-imperative-behind-employee-happiness.html "The commercial imperative behind employee happiness") in the industry are to retain employability. This [investment should be focused around workforce planning and skill](https://www.financedigest.com/quantamental-investment-trends-to-make-profits-through-creative-skills.html "Quantamental Investment Trends to Make Profits Through Creative Skills") development, with a dedicated strategy that fully equips FS firms to deal with anticipated future demand for skills, and proactively identifies and develops talent to fulfil the associated roles, an urgent priority. Data analysis should form a key part of this strategy, so [businesses have insight into what skills their employees are lacking when compared with the skillsets that are set](https://www.financedigest.com/acca-sets-out-magnificent-seven-attributes-vital-to-success-in-modern-business.html "ACCA Sets Out ‘Magnificent Seven’ Attributes Vital to Success in Modern Business") to be in-demand in future. That way, they are empowered to draw up and implement a strategic and informed programme which helps employees reskill in the competencies needed for those roles, ensuring they have a consistent pool of appropriate talent as their technology [adoption increases](https://www.financedigest.com/bicycle-market-growth-to-surge-owing-to-increasing-adoption-by-end-use-applications.html "Bicycle Market Growth to Surge Owing to Increasing Adoption by End-use Applications"). The UK’s FS sector has been defined by a number of different eras, and the current [technology boom and the rise of automation is the latest](https://www.financedigest.com/nvidia-unveils-latest-chips-technology-to-speed-up-ai-computing.html "Nvidia unveils latest chips, technology to speed up AI computing") of many. But one thing that will always remain is the importance of employees in upholding the industry, pursuing innovation and providing that [human touch](https://www.financedigest.com/putting-the-human-touch-back-into-banking-magazine.html "“Putting the human touch back into banking”-Magazine") that technology simply cannot replace. The onus lies with businesses to take action – they have the tools at their disposal to ensure a technology takeover remains the stuff of fiction, so now’s the time to start building a workforce where humans and automation [work side by side rather than at the expense](https://www.financedigest.com/the-flexible-working-revolution-is-here-so-why-arent-you-tracking-expenses-on-the-go.html "‘The flexible working revolution is here – so why aren’t you tracking expenses on the go?’") of one another. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---