Finance
Beware finance bros: AI is coming for banking before any other kinds of jobs, Citigroup warns
Bad news for the one percent: According to a new exhaustive report from Citigroup, finance is on track to bear the brunt of AI-related displacement.
AI will “profoundly change money,” the 124-page report declares in its introductory paragraph. Sure, it creates “new opportunities for growth and innovation, often improving our overall quality of life,” Citigroup says. But it also “destroys” and creates plenty of “losers.”
Wall Street bankers might just be chief among them. Nearly seven in 10 banking jobs (67%) have “higher potential” to be changed or even fully outsourced by AI, Citigroup wrote, drawing on data from Accenture and the World Economic Forum. That’s the highest share of any job they studied. Industries following just behind are insurance, software, and capital markets. (Perhaps to be expected, utilities and natural resources round out the bottom of the list.)
“Traditional AI adoption in financial services [is] widespread, shallow, and inconsequential,” Shameek Kundu, chief strategy officer and head of financial services at AI observability platform TruEra, wrote in the report.
The good news, however, is that AI implementation more broadly stands to hugely benefit banks and financial institutions. It may not even hurt total headcount, once requisite AI-related management hires are accounted for.
After all, AI is hardly sophisticated enough at this stage to operate independently. A “bot-powered world,” as Citigroup puts it, would still struggle with compliance, data security, and basic ethics, as “AI models are known to hallucinate and create information that does not exist.” Hardly a minor business risk.
Indeed, AI could add $170 billion to the profit pool for the banking sector globally by 2028. And the banks know it, even if they’re hesitant to deploy the technology. Almost all (93%) of financial institution respondents to a recent Citi client survey said AI adoption would improve their profitability in the next five years—mainly because of its ability to automate rote tasks human workers are currently saddled with, like data entry and dreaded Excel files.
Despite the measurable upside—which many other industries have long since embraced—Citigroup predicts financial services will be dragging its feet, slow on the AI uptake compared with other sectors. Citigroup chalks that up to the sector’s “highly regulated nature” and lack of globally agreed-upon rules. “Bankers may think that they lead the way,” Citigroup writes, “but many users are adopting technology faster than banks or big business,” a phenomenon it characterizes as “the crowds running ahead of the crown.”
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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