RTO, DEI, and AI — Oh, My! A Plethora of Changes Impact Bank HR Practices in 2025

Human resources managers at banks have challenging positions. Not only must they ensure that their hiring practices align with company strategies to grow revenue and manage risk, they must also keep an eye on political and technological trends that can influence their hiring procedures.

And let’s not forget about a financial institution’s current staff. Employees are the lifeblood of any organization, executing a company’s mission and driving innovation. In short, employees are a company’s most valuable asset.

Many U.S. companies allowed their employees to work from home during the pandemic, and financial institutions were leaders in allowing remote work at that time. In 2021, nearly 45% of employees in the finance and insurance industries worked from home, according to a recent report from the U.S. Bureau of Labor Statistics. 

Finance and insurance companies were less than two percentage points away from leading the remote work movement in 2021. But today, companies across many industries are peeling back remote work programs.

Nearly 80% of CEOs in the U.S. envision corporate employees with positions traditionally held in the office to return to their physical places of work within the next three years, according to a recent KPMG study. Only 34% of the country’s CEOs held that view in early 2024.

But the return-to-office (RTO) initiative hasn’t gone smoothly at all financial institutions.

In January, JPMorgan Chase (Chase) ordered employees who had been working remotely to return to their respective physical work locations five days a week.

But upon returning to the office, not all workers at the firm have greeted each other with warm embraces or engaged in impromptu group sing-a-longs of “Reunited” by Peaches & Herb.

Rather, reports reveal accounts of overcrowded workspaces plagued by excessive noise and malfunctioning internet connections. Chase colleagues who want to sit in close proximity to one another have had to resort to seat-saving methods one might expect to encounter at a general-admission rock concert, not in the offices of one of the largest financial institutions in the world.

Executives at Chase have taken note of employee struggles to adapt to the RTO mandate, but the company’s feedback to employees has essentially chastised them to do better.

“There’s a lot happening — return to office adjustments, open questions, real estate challenges,” Rohan Amin, Chief Product Officer of Chase, wrote in a recent memo to employees addressing RTO concerns. “I also know that uncertainty can be frustrating…That said, I have to ask: where’s the hustle?”

Shortly after taking office earlier this year, President Donald Trump spelled out his administration’s vision for diversity, equity, and inclusion (DEI) in the U.S. Trump ordered “all agencies to enforce our longstanding civil-rights laws and combat illegal private sector DEI preferences, mandates, policies, programs, and activities.”

Trump’s proclamation sent banks into a flurry of activity to scrub references of DEI from company filings. The list of financial institutions  aligning with Trump’s DEI directives includes some of the biggest names in banking, among them Bank of America, Goldman Sachs, and JPMorgan Chase.

Citigroup’s response to the communication likely included some changes to company business cards and signage as well. It renamed its “Diversity, Equity and Inclusion Talent Management” division to “Talent Management and Engagement”. 

“The recent changes in US federal government policy, including new requirements that apply to all federal contractors, call for changes to some of the global strategies and programs we’ve used to attract and support colleagues from various backgrounds,” Citigroup CEO Jane Fraser said in a memo addressing the company’s shifting strategy for diversity goals. 

Artificial intelligence (AI) also has the potential to significantly impact banking positions. Citigroup believes AI will replace more jobs in the banking sector than in any other industry. Approximately 54% of banking jobs can be automated, per Citigroup estimates. 

Companies can use AI to realize efficiencies, but, for now, AI is forcing some employees in bank human resources departments to spend more time vetting potential hires.

Reports indicate that job applicants are increasingly turning to AI-powered services to write their resumés. That’s a growing concern for banks that want to hire motivated, intelligent workers who are capable of writing a resumé without turning to ChatGPT.

2025 stands to be a pivotal year for the banking and credit card industry thanks to the potential reintroduction of the Credit Card Competition Act, proposed legislation to limit interest rates on cards, and increased competition from solutions such as buy now, pay later products. Financial institutions need the right teams in place to weather new adversities and grow their bottom lines.

Human resources managers must keep their fingers on the pulse of employee morale to retain workers and foster an environment that attracts job seekers. They must also ensure they’re nimble to respond to external factors, including changing governmental policies and advances in technology. If the first few months of the year are any indication, HR departments figure to have their hands full in 2025.