AI Reshapes Chinese Banks: 7,000 Fewer Hires and Accelerated Digital Transformation

Hiring Continues to Decline
AI Adoption Reports Higher Operational Efficiency

The landscape of employment (recruitment) for bankers in China is undergoing rapid changes due to advances in artificial intelligence (AI).

According to Sina Finance in China on September 13, the total number of new hires planned by the four major state-owned banks next year is estimated at approximately 64,000. This is a decrease of more than 7,000 compared to last year, and the downward trend has continued recently.

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Impact of Job Role Changes, Not Restructuring

This reduction in hiring is more attributable to changes in job roles than to straightforward restructuring. Positions such as counter services and simple account management have been significantly reduced, while technical roles related to AI algorithms, data analysis, and digital asset management have significantly increased. Local media analyzed, "Although the overall workforce of banks is shrinking, the technology sector is rather expanding," adding, "Banks no longer need simple manpower but instead require talent capable of handling AI and technology."

In fact, improvements in work efficiency brought about by the introduction of AI have already become apparent. In the first half of this year, AI-based systems at China's commercial banks achieved effects equivalent to 1,388 hours of human labor. Additionally, the AI application (app) of Shanghai Pudong Development Bank is evaluated as having accomplished in a single year what would ordinarily require 2,500 people.

Professor Tian Lihui of Nankai University summarized the reasons for the decrease in hiring as threefold: technological substitution, operational constraints, and a restructuring of the talent pool. He emphasized, "Banks are no longer competing to secure just top talent; rather, they are seeking individuals who can work with artificial intelligence."

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Chinese Banks Moving to Attract Talent... Average Monthly Salaries on the Rise

Accordingly, banks are making efforts to recruit talent with expertise at the intersection of IT and data. Some are specifically recruiting professionals in AI and data marketing, while others are subdividing information technology roles into software development, data analysis, and information security, thereby giving preference to candidates with the required specializations.

Amid reductions in headcount, employee compensation per capita has improved. According to Wind Data, a Chinese financial information service provider, as of the end of June this year, the total number of employees at 42 listed banks decreased by about 35,500 compared to the beginning of the year. Of this, more than 30,000 reductions were recorded at just the six largest banks.

In the first half of this year, the average annual salary per person in the banking sector was 206,600 yuan (approximately 41.43 million won), up 2,600 yuan from the same period last year. The average monthly salary was 34,400 yuan (approximately 6.9 million won).

This content was produced with the assistance of AI translation services.