Artificial intelligence and automation are transforming Europe’s banking sector, reshaping employee roles, working models and skills requirements, Jens Tau, chairman of the Banking Committee for European Social Affairs (BCESA) of the European Banking Federation (EBF).

Speaking to the Cyprus News Agency (CNA) ahead of a meeting in Limassol on Friday, Tau said that routine tasks in compliance, fraud detection and customer service will increasingly be automated, enabling staff to focus on higher value work.

“This will lead to more flexibility and healthier working environments,” he noted.  

He explained that the shift is also visible in staffing, recruitment and assessment, which are being reshaped by AI tools, adding that these create new responsibilities for transparency and the prevention of bias. 

He stressed that advisory and analytical roles are expected to expand. Client advisors, he said, now operate in AI-powered digital environments, which changes the nature of customer contact and demands new digital skills.  

“To prepare employees for these roles, banks are investing significantly in ongoing retraining as simpler tasks are gradually phased out,” he said, explaining that employees will increasingly focus on client-facing, advisory and strategic analysis functions.

Turning to work organisation, Tau underlined that hybrid work has become the new normal. He cited recent EBF research showing that more than half of employees already work in hybrid environments, with three-quarters spending at least part of their time away from the office.  

“The combination of office and teleworking is well established and is expected to remain a key feature,” he said. 

He went on to explain that the trend has extended beyond IT and administrative roles to investment, corporate and retail banking.  

The impact on wellbeing, he said, is also notable: hybrid work is associated with higher satisfaction and fewer reports of stress, burnout and depressive tendencies compared with the broader workforce. 

Tau acknowledged that challenges remain. Ensuring productivity and cohesion across distributed teams, he said, is not always easy, while infrastructure gaps between regions risk creating inequalities in employee experience.  

“A key point will remain bridging the digital divide and ensuring efficient infrastructure for access, including AI,” he explained, adding that not all regions or institutions are equally equipped for remote work. 

Nonetheless, he observed that most initial hurdles have been overcome. Employees and managers now rate efficiency and goal achievement as above average, with trust and communication holding up across locations.  

Tau also pointed out that hybrid work has had no negative impact on data security or regulatory compliance. “Flexibility in place and time of work remains important for attracting staff,” he said, noting that hybrid workers tend to work fewer hours and do less overtime than others, countering concerns about overwork. 

On the idea of a four-day work week, Tau expressed doubts about its suitability for banking. He acknowledged that the bank employees’ union Etyk’s proposal forms part of a broader European debate on flexible models but argued the concept is losing ground.

 “It is not convincing to call for a reduction in daily working hours and then advocate longer working days in a four-day week,” he said.  

Existing flexible models, he continued, already allow employees to adjust schedules in ways that resemble a shortened week, without compromising customer service. 

“In all these discussions, ensuring the availability of services for customers is key,” he noted.  

For that reason, he said, European social partners prefer to focus on flexible models and reduced hours rather than fixed reductions in working days.  

“The answer is not another fixed working day model, but supporting work-life balance through flexibility in time and place of work,” he stressed. 

Asked about the workforce of tomorrow, Tau pointed to a blend of traditional financial expertise and digital competencies.  

“All employees will need to acquire and maintain proficiency in data management and the use of AI,” he said, adding that the ability to interpret analytics and manage digital workflows will be essential. He also underlined the importance of remote collaboration skills as teams spread across different locations. 

He emphasised that new specialist roles are emerging. As banks increase exposure to green assets, ESG-focused portfolio managers will be in high demand, he said, while the digital push is also driving demand for cybersecurity and regulatory compliance specialists.  

He underlined that people-centric roles will remain vital in an age of automation. “Relationship building, judgment and empathy will continue to matter, particularly in private banking, investment advisory and HR management,” he explained. 

On risks, Tau said automation could eliminate lower-skilled roles, especially in customer service and operations.  

But demographic changes may prove an even greater challenge. “The number of employees who will retire in the next ten years exceeds even the most pessimistic estimates of job losses due to new technology,” he remarked, stressing the need for retention and retraining as the workforce ages. 

He acknowledged that hybrid work, while generally positive, also requires careful oversight. Banks, he said, are launching programmes to prevent the isolation of remote workers and to strengthen engagement.  

He stressed that risks lose their negative impact when properly managed, adding that structures are already in place to anticipate problems before they escalate. 

Tau also pointed to the BCESA’s role in facilitating social dialogue at European level, producing joint declarations that provide common positions on pressing employment issues.  

“Instead of each country or organisation working separately, joint statements and European declarations allow for coordinated and effective solutions,” he said. 

Moreover, he underlined the importance of monitoring new developments, from hybrid models to the use of AI in HR and decision-making.

He said social partners carry a particular responsibility in shaping AI’s transparent and ethical use.

“The way in which artificial intelligence will be introduced into banking must ensure fairness and accountability,” Tau concluded.