Zopa and Juniper Research report shows digital lenders gaining advantage as traditional banks prepare for workforce transformation by 2030
UK banks will invest £1.8bn (US$2.43bn) in generative artificial intelligence by 2030, according to research published by digital lender Zopa and Juniper Research.
The investment aims to increase productivity and reduce operational costs as the sector adapts to changing customer expectations.
The research indicates that Gen AI deployments will save 187 million hours of labour over the next five years. Back office and administrative tasks in operations and compliance account for 82% of these efficiency gains.
Cost savings from Gen AI implementation are projected to match the total investment by 2030, delivering a 100% return on investment during the first deployment cycle. Back-office functions are expected to generate 50% of the total cost reductions.
The findings suggest that traditional high street banks with large branch networks and legacy IT systems stand to benefit most from Gen AI automation due to their higher levels of manual processes.
Workforce transformation accelerates across sector
The research identifies 27,000 banking roles at risk of change by 2030, representing 10% of UK banking employment. Traditional retail banks with large physical footprints face the greatest impact from this workforce transformation.
Digital banks already operating AI systems will experience less disruption during the transition.
These institutions have built operational experience with machine learning technologies before large language models became widely adopted.
Peter Donlon, Chief Technology Officer at Zopa Bank, says Gen AI represents a shift in applied computing comparable to the internet or cloud computing.
“At Zopa, we’ve been operationalising machine learning for over a decade, well before LLMs became mainstream,” Peter says. “That depth of experience has shaped our belief that GenAI isn’t a feature add-on, but a foundational capability.”
The digital bank has deployed enterprise-grade Gen AI licences to all employees alongside OpenAI training programmes covering prompt writing and custom GPT development.
Reskilling initiative targets 100,000 workers
Zopa has launched Jobs 2030, a five-year programme to reskill 100,000 banking workers in AI disciplines. The initiative begins with modules for fintech engineers, analysts and operations staff before expanding to include a Gen AI Engineering Programme and Zopa Coding Academy.
Training modules will first be tested with Zopa employees before broader industry rollout. The programme provides industry-specific training aligned with UK banking sector requirements.
Nick Maynard, VP of Fintech Market Research at Juniper Research, says the sector faces a critical transition period.
“The UK banking sector stands at a tipping point, with Gen AI being set to reshape how banking fundamentally works,” Nick says. “Digital-only brands like Zopa already have deep experience with AI in their operations and will be less impacted by this shift.”
Zopa has integrated Gen AI across multiple operational areas, from customer query handling and vulnerability detection to autonomous coding agents for development processes. The bank plans to introduce an AI Voice Assistant to enhance customer interactions.
Traditional banks face adaptation challenge
High street banks with extensive branch networks must navigate more complex Gen AI integration due to established infrastructure and operational processes.
These institutions operate at higher levels of manual processing that create both opportunities for automation and implementation challenges.
The research suggests that digital-first institutions will lead market transformation due to their existing AI capabilities and operational flexibility.
Traditional banks must balance Gen AI adoption with legacy system constraints and regulatory requirements.
Cost efficiencies from Gen AI deployment vary across different banking functions, with back-office operations offering the greatest potential for automated processes.
Customer-facing applications present additional opportunities but require careful implementation to maintain service quality.
Clare Gambardella, Chief Customer Officer at Zopa, says the technology represents a fundamental shift in banking capabilities. “Generative AI marks a once-in-a-generation shift – redefining the future of work and the skills that power it,” Gambardella says.
“We’ve always believed in using technology to remove complexity and put people in control of their finances. With Gen AI, we have the opportunity to continue on that journey – making the customer experience more intuitive, personalised and intelligent than ever before for millions across the UK.”
Source – https://fintechmagazine.com/news/uk-banks-plan-1-8bn-gen-ai-spend-as-27-000-jobs-face-change