SINGAPORE: As artificial intelligence adoption accelerates in the banking sector, roles in customer service, risk management and marketing are most at risk of being replaced.
Recruiting agencies told CNA that banks, operating in data-rich environments, are particularly well-positioned to integrate AI-driven solutions.
Their comments follow an announcement by DBS, Southeast Asia's largest bank, that it plans to reduce its contract and temporary workforce by 10 per cent over the next three years.
This reduction translates to roughly 4,000 job cuts, with AI expected to take over many of the tasks currently performed by human employees, said DBS CEO Piyush Gupta at an industry conference in Mumbai last week.
While the bank declined to specify which roles would be cut, it said AI could “reduce the need to renew” temporary and contract staff members working on specific projects across its 19 markets.
Permanent staff will not be affected.
Ms Linda Teo, country manager of ManpowerGroup Singapore, said AI and automation have advanced significantly in executing repetitive and predictable tasks.
“Roles characterised by such tasks are more susceptible to impact from AI adoption,” she said.
For example, data entry clerks face automation through AI-driven data processing tools, while customer service representatives may be partially replaced by chatbots and virtual assistants. As digital banking solutions become more sophisticated, some bank teller functions may also be automated.
Ms Lim Chai Leng of Randstad Singapore said risk management roles involving credit risk assessment and compliance surveillance are likely to be partially automated.
In addition, AI is playing an increasing role in digital sales, marketing and finance automation, where tasks like data crunching and basic analysis may evolve, said Ms Lim, who is general manager of banking, life sciences, construction and property at Randstad.
Banks were able to adopt and integrate AI more quickly than other sectors due to their vast amounts of data, spanning customer lifecycles to historical market trends, said Ms Lim.
Financial institutions also have the resources to make significant investments in AI technologies, said Ms Amber Chang, associate manager at Michael Page Singapore.
“Given the current benefits AI is providing in improving efficiency and profitability, I believe banks will continue to invest more in AI compared to other industries,” she added.
Ms Teo of ManpowerGroup said financial sector employers are actively integrating AI, and many consumers are willing to share data for faster, more streamlined services.
“The sheer volume of financial transactions, the sophisticated nature of risk modelling and the stringent regulatory requirements within the banking sector place it at the forefront of AI adoption,” she said.
However, she pointed out that the banking industry has a strong track record of adapting to technological change. Many roles require complex decision-making, relationship management and ethical considerations – areas where human judgment remains essential.
The Singapore government and financial institutions are also investing in upskilling initiatives to prepare employees for an AI-driven future.
“The proactive measures being taken suggest that the impact may be significant, but not necessarily disproportionately so, compared to other industries,” she said.
While AI poses challenges, recruiters told CNA they believe it also presents new opportunities.
“While some roles may be displaced due to AI, new opportunities are emerging, particularly in areas where there are significant talent shortages,” said Ms Teo.
She cited a survey by ManpowerGroup indicating that 79 per cent of employers in the financial and real estate sectors struggle to find talent, with IT and data skills most in demand.
AI is more likely to “augment roles rather than entirely replace them”, so employees must adapt to work effectively with AI systems, Ms Teo said.
Ms Chang of Michael Page Singapore echoed this sentiment, stating that AI will likely shift the nature of work. There is growing demand for professionals who can develop, manage and oversee AI systems, as well as those who can interpret AI-generated insights, she said.
To remain competitive, workers must upskill quickly, said Randstad's Ms Lim. Coding skills and software proficiency – such as data analytics proficiency and programming capabilities – will be critical in all areas of banking, she said.
Soft skills such as critical thinking and communication will also become increasingly valuable, she added. Human employees can also contextualise AI output and make strategic decisions.
“The value of human professionals is still critical,” she said.
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Recruiting agencies told CNA that banks, operating in data-rich environments, are particularly well-positioned to integrate AI-driven solutions.
Their comments follow an announcement by DBS, Southeast Asia's largest bank, that it plans to reduce its contract and temporary workforce by 10 per cent over the next three years.
This reduction translates to roughly 4,000 job cuts, with AI expected to take over many of the tasks currently performed by human employees, said DBS CEO Piyush Gupta at an industry conference in Mumbai last week.
While the bank declined to specify which roles would be cut, it said AI could “reduce the need to renew” temporary and contract staff members working on specific projects across its 19 markets.
Permanent staff will not be affected.
Related:
ROLES AT RISK
Ms Linda Teo, country manager of ManpowerGroup Singapore, said AI and automation have advanced significantly in executing repetitive and predictable tasks.
“Roles characterised by such tasks are more susceptible to impact from AI adoption,” she said.
For example, data entry clerks face automation through AI-driven data processing tools, while customer service representatives may be partially replaced by chatbots and virtual assistants. As digital banking solutions become more sophisticated, some bank teller functions may also be automated.
Ms Lim Chai Leng of Randstad Singapore said risk management roles involving credit risk assessment and compliance surveillance are likely to be partially automated.
In addition, AI is playing an increasing role in digital sales, marketing and finance automation, where tasks like data crunching and basic analysis may evolve, said Ms Lim, who is general manager of banking, life sciences, construction and property at Randstad.
WHY BANKING IS AT THE FOREFRONT OF AI ADOPTION
Banks were able to adopt and integrate AI more quickly than other sectors due to their vast amounts of data, spanning customer lifecycles to historical market trends, said Ms Lim.
Financial institutions also have the resources to make significant investments in AI technologies, said Ms Amber Chang, associate manager at Michael Page Singapore.
“Given the current benefits AI is providing in improving efficiency and profitability, I believe banks will continue to invest more in AI compared to other industries,” she added.
Ms Teo of ManpowerGroup said financial sector employers are actively integrating AI, and many consumers are willing to share data for faster, more streamlined services.
“The sheer volume of financial transactions, the sophisticated nature of risk modelling and the stringent regulatory requirements within the banking sector place it at the forefront of AI adoption,” she said.
However, she pointed out that the banking industry has a strong track record of adapting to technological change. Many roles require complex decision-making, relationship management and ethical considerations – areas where human judgment remains essential.
The Singapore government and financial institutions are also investing in upskilling initiatives to prepare employees for an AI-driven future.
“The proactive measures being taken suggest that the impact may be significant, but not necessarily disproportionately so, compared to other industries,” she said.
Related:
WHAT SHOULD WORKERS DO?
While AI poses challenges, recruiters told CNA they believe it also presents new opportunities.
“While some roles may be displaced due to AI, new opportunities are emerging, particularly in areas where there are significant talent shortages,” said Ms Teo.
She cited a survey by ManpowerGroup indicating that 79 per cent of employers in the financial and real estate sectors struggle to find talent, with IT and data skills most in demand.
AI is more likely to “augment roles rather than entirely replace them”, so employees must adapt to work effectively with AI systems, Ms Teo said.
Ms Chang of Michael Page Singapore echoed this sentiment, stating that AI will likely shift the nature of work. There is growing demand for professionals who can develop, manage and oversee AI systems, as well as those who can interpret AI-generated insights, she said.
To remain competitive, workers must upskill quickly, said Randstad's Ms Lim. Coding skills and software proficiency – such as data analytics proficiency and programming capabilities – will be critical in all areas of banking, she said.
Soft skills such as critical thinking and communication will also become increasingly valuable, she added. Human employees can also contextualise AI output and make strategic decisions.
“The value of human professionals is still critical,” she said.
Continue reading...