AI in Banking and Finance: Learn How’s AI Changing the Industry

Over past decades, Singapore has been positioned as a global financial hub, housing a robust banking and finance industry that’s vital to the domestic and regional economy. In the era of rapid technological advancements, this sector dived headfirst into a tech transformation.

This article delves into the evolution of the region’s banking and finance sector in Singapore, shedding light on how the industry is both adapting to cutting-edge technology and redefining the landscape of employment opportunities.

Technology-Driven Evolution in the Banking Industry

Generative artificial intelligence (AI) stands at the forefront of technology-driven transformation in Singapore’s financial sector, propelling a surge in tech spending.

According to research firm Forrester, tech spending in Singapore is projected to reach a staggering US$22.2 billion in 2023, marking a 4.6% increase from the US$21.2 billion spent in 2022 and surpassing the US$20.5 billion recorded in the pandemic year of 2021.

Furthermore, research house IDC anticipates Singapore’s investment in AI alone to exceed US$3.5 billion by 2026, nearly tripling the US$1.2 billion spent in 2022. Here are the top three trends shaping the 2023 job evolution:

1. Artificial Intelligence (AI) Takes Center Stage

AI is revolutionising banking operations. From automating tasks to enhancing the customer experience, AI’s impact is significant. Job roles like AI specialists and data scientists are in high demand, while routine manual jobs are gradually being replaced.

• Jobs Eliminated: Routine manual tasks, data entry positions, and basic customer service roles that can be automated.
  
• Jobs Created: AI specialists, data scientists, machine learning engineers, AI ethicists, AI product managers, AI trainers, and educators.

2. Digital Disruption and the Rise of Fintech

Digital disruptions, coupled with the rise of fintech companies, are redefining the competitive landscape. Banks are embracing digital banking, offering services online, and facing increased competition not only from traditional rivals but also from innovative fintech startups.

• Jobs Eliminated: Traditional banking roles that become redundant due to digital transformation, such as some teller positions.
  
• Jobs Created: Digital banking experts, fintech specialists, cybersecurity experts, customer experience specialists, and AI strategy consultants.

3. Cybersecurity and Data Security

With the digital front under constant threat from cyberattacks, safeguarding customer information and financial data is paramount. Financial institutions invest heavily in advanced security measures, driving up operational costs to ensure trust and data security.

• Jobs Eliminated: Some manual data security monitoring roles that can be automated by AI.
  
• Jobs Created: Cybersecurity experts, compliance and regulatory analysts, AI ethicists (to ensure data security), and AI trainers and educators for cybersecurity teams.

HR and Recruitment Services in Singapore in the Era of AI

Singapore’s finance sector isn’t just adopting tech; it’s transforming job prospects. As AI gains prominence, recruitment strategies shift. According to Harvard Business Review, 44% of businesses use AI in IT, and 19% use it to predict customer preferences.

The HR landscape is also undergoing a transformation. A remarkable 96% of senior HR professionals believe that AI has the potential to significantly enhance talent acquisition and retention. AI-driven tools streamline recruitment processes, making them more efficient, precise, and capable of identifying the best-suited candidates.

This not only helps the industry stay competitive in a tech-forward landscape but also positions Singapore’s financial sector as an attractive destination for tech-savvy job seekers.

The industry is reinventing its business models to harness the power of technology fully. Investments in technology infrastructure, coupled with the recruitment of tech/IT professionals, are reshaping the sector’s workforce. In 2021, the financial services sector employed more than 209,000 individuals.

Banking Talent Recruitment Changes in Singapore

Singapore’s prominent banks are taking decisive steps in response to the tech revolution. Oversea-Chinese Banking Corporation (OCBC) has doubled its tech teams in areas like blockchain, AI, and augmented reality, hiring 1,500 tech professionals over 3 years. United Overseas Bank (UOB) plans to add over 2,700 employees in 2023, with 500 in tech and data roles.

DBS, the region’s largest bank, boasts about 1,000 data professionals and a commitment to digital transformation. These local institutions are strategically augmenting their tech workforce to stay competitive amid evolving technological trends.

Key Jobs That Shape the Future of Banking Recruitment

Overall, banks will seek a mix of technical and non-technical roles to harness the potential of AI while ensuring responsible and ethical implementation within the industry. Here are some job roles and positions that are likely to emerge or become more prominent:

1. AI and Machine Learning Specialists: Banks will need experts who can develop and implement AI and machine learning algorithms to improve customer service, risk assessment, fraud detection, and other critical functions.
   
2. Data Scientists and Analysts: The demand for data scientists and analysts will continue to grow as banks rely on data-driven insights to make informed decisions. These professionals will collect, analyse, and interpret data to drive business strategies.
   
3. AI Ethicists and Compliance Officers: As AI becomes more integrated into banking processes, there will be a need for professionals who can ensure that AI systems adhere to ethical standards and regulatory compliance.
   
4. Cybersecurity Experts: With increased reliance on AI and digital technologies, the need for cybersecurity experts will remain high. These experts will be tasked with protecting banks’ AI systems and customer data from cyber threats.
   
5. Customer Experience Specialists: Banks will seek professionals who can leverage AI to enhance the customer experience. This may include roles focused on chatbots, virtual assistants, and personalised marketing using AI.
   
6. AI Product Managers: These professionals will bridge the gap between technical teams and business objectives, ensuring that AI initiatives align with the bank’s strategic goals.
   
7. AI Trainers and Educators: As AI systems become more prevalent, banks may need experts to train and educate employees on how to effectively use and interact with AI tools.
   
8. Quantitative Analysts (Quants): Quants will continue to be in demand for their expertise in developing and validating AI models for risk management, trading, and portfolio optimisation.
   
9. Compliance and Regulatory Analysts: These professionals will help banks navigate the regulatory landscape surrounding AI applications in finance and ensure compliance with industry standards.
   
10. AI Strategy Consultants: Consulting firms specialising in AI strategies may assist banks in developing and implementing AI roadmaps, helping them stay competitive and compliant.

Conclusion

AI is not just a trend but a transformative force. With billions invested and tech integration at its core, the industry is evolving rapidly. It’s not just reshaping financial processes; it’s moulding the job landscape.

From AI specialists to compliance analysts, new roles are emerging. This AI-powered revolution ensures Singapore’s financial sector remains dynamic, competitive, and ready for the challenges of tomorrow.

Learn more about our services and reach out now to embark on your journey to success in the evolving banking industry with one of the top recruitment services in Singapore.