NatWest CEO warns AI will take some banking jobs as automation reshapes financial sector

NatWest CEO Confirms AI Will Replace Existing Banking Roles

Paul Thwaite, CEO of NatWest, has openly acknowledged that AI in banking will eliminate certain roles currently performed by humans. Speaking at a business summit hosted by The Times, Thwaite stated that "there will be roles that currently exist that absolutely to all intents and purposes [will be] delivered by AI" 1

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. While the executive stopped short of committing to specific workforce reductions at NatWest, which employs approximately 60,000 people, he confirmed the workforce "is definitely going to change" 1

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. The bank is already expanding its hiring in software and AI-related positions, signaling a shift in the type of talent financial institutions now prioritize 2

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AI Will Take Some Banking Jobs Across European Financial Sector

Thwaite's comments align with broader industry projections about AI's impact on employment in the financial sector. Morgan Stanley recently predicted that European banks will reduce their workforces by 10%, eliminating approximately 200,000 banking jobs within five years as AI to automate banking roles becomes more prevalent 1

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. Standard Chartered has already announced plans for nearly 8,000 job cuts, with CEO Bill Winters initially stating the technology would replace "lower-value human capital" before clarifying that job eliminations reflect changes in work rather than employee value 1

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. HSBC chief Georges Elhedery echoed similar sentiments, predicting that automation "will destroy certain jobs and create new jobs" 1

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Competing Visions for Workforce Transformation

Not all banking leaders share the same approach to managing workforce reductions. Jamie Dimon, chairman and CEO of JPMorgan Chase, has emphasized reskilling existing employees rather than mass layoffs, stating his bank focuses on shifting staff into new roles as AI reshapes traditional operations 1

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. In May, Dimon suggested JPMorgan Chase may eventually hire more AI experts in banking than traditional bankers, noting "we will be hiring more AI people and fewer bankers in certain categories, and it will make them more productive" 2

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. This strategy reflects a broader debate within the industry about whether AI adoption in financial services should prioritize job displacement or workforce evolution.

AI Adoption Accelerates in Back-Office Functions

The rapid deployment of AI in banking is already transforming operational workflows. According to PYMNTS Intelligence, 85% of financial services and insurance firms with at least $1 billion in annual revenue plan to increase their AI budgets over the next 12 months . The most adopted AI tasks include credit risk assessment and scoring at 60%, sales forecasting and pipeline optimization at 60%, and revenue recognition and accounting close at 65% . Nvidia's State of AI in Financial Services: 2026 Trends report indicates nearly 90% of financial institutions are deploying or assessing AI, with 65% already using it . Deutsche Bank's chief information officer Denis Roux recently revealed that AI has enabled the bank to cut completion time for some tasks from two years to as little as three months .

Industry Faces Scrutiny Over Communication Strategy

The way banking executives discuss AI and job displacement has drawn criticism from policy analysts and think tanks. Patrick Sullivan, CEO of the Parliament Street think tank, challenged Thwaite's remarks, stating: "Another day, another city chief scaremongering the workforce without due consideration for the consequences. What we need from finance chiefs is a clear action plan for how tools like AI will reshape the jobs market" 1

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. This criticism highlights growing concern that financial leaders are announcing AI-driven changes without providing adequate roadmaps for employee transition or economic impact assessment. As automation continues to reshape the sector, stakeholders increasingly demand transparency about how banks will manage the human cost of technological advancement while maintaining productivity gains.🟡Tahoma