Banks still hiring, not shrinking

Banks are still adding people in 2026, even as they spend more on artificial intelligence and automate parts of the job. American Banker reported April 15 that hiring could outpace layoffs in the months ahead and that artificial intelligence is not the main driver of cuts many bankers expected. (americanbanker.com) American Banker’s 2026 AI Talent Shift survey was fielded in March 2026 and covered 206 banking professionals across banks, credit unions, neobanks and payments firms. A separate April 8 report from the same survey said most institutions raised artificial intelligence spending by at least 10% over the last year. (americanbanker.com) The hiring is not spread evenly. Business Insider reported April 14 that Citigroup’s banking unit operating expenses rose 20% to $1.2 billion in the first quarter, driven partly by higher compensation, headcount and investment, while banking revenues rose 15% to $1.8 billion and investment-banking fees rose 19% to $1.3 billion. (businessinsider.com) Citigroup has been adding senior rainmakers rather than shrinking around them. Business Insider said recent hires included Pankaj Goel from JPMorgan Chase to co-lead technology investment banking, Alex Watkins from JPMorgan Chase as head of technology financing, and David Friedland, a former Goldman Sachs partner, as co-head of North America investment banking. (businessinsider.com) Citigroup’s own first-quarter results, released April 14, showed net income of $5.8 billion on $24.6 billion of revenue. CNBC reported that revenue was the bank’s best quarterly total in a decade, with earnings per share of $3.06 versus a $2.65 estimate compiled by London Stock Exchange Group. (citigroup.com, cnbc.com) Bank of America added another signal on April 15. The bank reported first-quarter net income of $8.6 billion, or $1.11 a share, on revenue of $30.3 billion, and CNBC said both figures beat analyst estimates as equities trading, investment-banking fees and net interest income rose. (bankofamerica.com, cnbc.com) The backdrop is a banking industry that is spending on software and people at the same time. American Banker reported April 9 that more than half of United States bankers now say artificial intelligence is a priority, while its April 15 hiring report found the technology has not translated into broad-based staff cuts. (americanbanker.com, americanbanker.com) That leaves a split labor market inside banks. Firms are still paying up for dealmakers, relationship managers and engineers tied to revenue growth, even as automation pressure remains strongest in more routine work and support functions, according to American Banker’s survey findings and Citigroup’s staffing push. (americanbanker.com, businessinsider.com) For now, the 2026 picture is not banks replacing bankers with machines. It is banks using artificial intelligence while still hiring where fees, trading revenue and client relationships are growing fastest. (americanbanker.com, cnbc.com, businessinsider.com)