AI-Powered Banking: Savings Soar, Workforce Shrinks

The rise of AI is transforming banking, driving both opportunity and disruption. A new report by Zopa and Juniper forecasts £1.8 billion in savings by 2030, balanced against 27,000 job losses, largely in customer-facing and back-office roles.

Behind the scenes, 154 million hours per year—82% of time saved—will come from automating fraud detection, compliance, and risk oversight, reducing costs by £923 million annually. These efficiencies are seen as critical in cutting human error and supporting new fraud reimbursement standards.

Over £1.1 billion will be invested in customer-facing technologies, including AI-driven chatbots and assistants. These could save £540 million and reclaim 26 million hours of staff time annually, while portfolio management AI improves reporting without replacing human advisors.

The job risk is considerable, with 14,000 customer service and 10,000 back-office roles expected to be eliminated. Yet the report emphasises potential for retraining displaced employees into oversight and governance positions. Zopa CTO Peter Donlon called the transition “a once-in-a-generation chance to reimagine the workforce.”

As digital challengers like Zopa expand with AI at their core, legacy banks must accelerate transformation or risk falling behind. Juniper’s Nick Maynard warned that generative AI is a tipping point, both a threat and an opportunity for the sector.