Danske Bank has warned of big cuts, with analysts betting at least 1,000 jobs will be axed, especially in compliance
Helsinki/Stockholm — A few years ago, the biggest banks in one of the richest corners of the globe were adding thousands of jobs to a department that suddenly seemed more important than most others: compliance.This month, Danske Bank warned of “significant” cuts, with analysts betting at least 1,000 jobs will be axed, especially in compliance. Nordea Bank says most of the 1,500 jobs it created to fight financial crime just a few years ago should be automated to keep costs in check.
“After the scandals the banks rushed to add people, since they couldn’t change technology overnight. The simplest way is adding more people,” said Sujata Dasgupta, Stockholm-based expert on financial crimes compliance at Tata Consultancy Services. But, she said, “there will be a rebalancing of labour: you might not need so many people in the first line, and there’s scope for automation”.
“Reversing the compliance-cost burden of the banks in the aftermath of the money-laundering scandal is likely to be key,” said Philip Richards, a senior analyst at Bloomberg Intelligence.
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