So it's back to 3 - 6 - 3 banking?*
From Bloomberg, February 27:
- Accenture says banking sector has more to gain than any other
- AI offers opportunity for firms to re-evaluate ways of working
Artificial intelligence is likely to replace or at least lend a hand in tasks that take up almost three-quarters of the time bank employees now spend working.
That’s the conclusion of a new analysis by consultancy Accenture, which said banking has the potential to benefit more from the technology than any other industry. Just 27% of employees’ time currently has a low potential of being transformed, according to the analysis.
“There is a reinvention that is happening across banks, a way for firms to step back and re-evaluate ways of working,” Keri Smith, global banking data and AI lead at Accenture, said in an interview.
The release of ChatGPT more than a year ago prompted many firms to boost hiring for AI-related positions and test more uses for generative AI, which can summarize documents, write emails and churn out responses to users’ questions. The world’s biggest banks have been experimenting, spurred by the promise that the technology will boost staffers’ productivity and cut costs.
“Every bank needs to think through their talent strategy, and how to take this technology to scale,” Smith said.
At Citigroup Inc., all 40,000 coders will have the ability to experiment with different AI technologies by the end of March. Analysts at Bank of New York Mellon Corp. can wake up two hours later to write their research, because AI technology can create a rough draft and prepare related data for them overnight, Chief Executive Officer Robin Vince said on an earnings call last month....
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*From the Federal Reserve Bank of Richmond Virginia's Economic Quarterly, Winter 2006:
The 3-6-3 Rule: An Urban Myth?
Observers often describe the banking industry of the 1950s, 1960s, and 1970s as operating according to a 3-6-3 rule: Bankers gathered deposits at 3 percent, lent them at 6 percent, and were on the golf course by 3 o’clock in the afternoon. The implication is that the industry was a sleepy one, marked by a lack of aggressive competition. Further, the often heard phrase “bankers’ hours” also seems to point to a lack of competitive zeal. Tight regulation is thought to have limited competition and allowed the 3-6-3 rule and the concept of bankers’ hours to survive....
