Employees brace for change as Singapore banks embrace AI

Singapore banks are betting big on AI to get ahead, but a critical challenge remains: ensuring their staff aren’t left behind in an AI-driven future.

It is no surprise that employees are uneasy. In January, a Bloomberg Intelligence report forecast that global banks could cut as many as 200,000 jobs in the next three to five years, as AI encroaches on tasks currently carried out by humans.

Closer to home, DBS said in February that with increased AI adoption, it was expecting to reduce its contract and temporary staff across 19 markets by around 4,000 over the next three years.

Even so, banks polled by The Business Times (BT) say the tech will more likely augment rather than replace most roles, provided staff can work more efficiently using AI.

Banking jobs face a reality check

The jobs AI threatens most are those involving repetitive and predictable tasks.

These include data entry clerks, customer service representatives, and certain teller functions – all of which are increasingly supported or replaced by digital tools such as chatbots and virtual assistants, says Linda Teo, country manager of ManpowerGroup Singapore.

She notes that entry-level analysts may see parts of their work, such as financial data analysis, supported or replaced by AI-generated insights.

The tech is also increasingly used for know-your-customer processes and transaction monitoring – scanning data for potential fraud, says Lim Chai Leng, general manager of Randstad Singapore.

“This has shifted hiring requirements toward talent who can work alongside technology to analyze data, improve customer experience, and guide financial decision-making,” she adds.

See also: Call center apocalypse fails as flesh beats AI economics

This will change the shape of banking careers, with fewer entry-level roles available, says Gaurav Kwatra, partner and head of Quotient, AI by Oliver Wyman in Asia Pacific.

“But organizations will also try to balance it and keep the future in mind, because they want to have the future senior bench in place as well,” he explains.

ManpowerGroup’s Teo also expects the demand for temporary and contract roles to start declining, especially for those not requiring specialist skills.

Augment, not replace

AI skills training

AI is becoming banks’ new secret weapon