Generative artificial intelligence (GenAI) is driving changes in jobs and skills across financial institutions (FIs) and fintechs in Singapore, impacting all tech roles in varying degrees, a new survey finds.

According to the latest tech talent report by Singapore FinTech Association (SFA), in collaboration with Accenture, 89% of FIs are exploring or have already implemented GenAI in 2024. Additionally, 65% of FIs are already implementing GenAI in their operations, a 27% increase from the previous year. Notably, a higher number of FIs compared to fintechs have integrated GenAI into their operations.

Tasks likely to be automated or augmented by GenAI

Source: Singapore Technology Talent Report 2024

But while the Singapore labour market is optimistic about positive revenue growth, the study also finds that FIs are taking a cautious approach to hiring, with 57% citing a hiring freeze or forecasting a decrease in headcount given the current economic climate.

Also, fintechs and FIs are adopting flexible workforce models, continuing to outsource non-essential capabilities and investing in internal capability development to retain long-term strategic roles.

As AI continues to automate routine tasks, the demand for distinctly human skills, such as critical thinking, creativity and leadership, is rising significantly, highlighting a growing need to cultivate cognitive abilities that complement AI systems.

Skills likely to gain importance or lose relevance as a result of GenAI

Source: Singapore Technology Talent Report 2024

The study shows that the top skills gaining importance with GenAI integration are critical thinking (61%), AI literacy (55%), data analysis (39%), and creativity and innovation (39%).

While foundational technical skills in AI are essential, there is a growing need for behavioural skills to fill the gap left by GenAI’s inability to replicate human judgement. This shift is giving rise to a new talent profile – the “techno-functional connector” who bridges the gap between business and technology to ensure technical solutions align with business objectives.

The study reveals a divide between employers and employees regarding key factors influencing employee decisions to leave or join an organization.

A key finding is that individuals join and leave companies for similar reasons – rewards and opportunities. To effectively attract and retain tech talent, FIs and fintechs must tailor their benefit packages, redefining “rewards” to include learning and development budgets, health benefits, flexible leave policies, and lifestyle discounts. This approach addresses the diverse needs and expectations across different generational groups.

Employees identified their top three considerations in joining a company as opportunity (75%), rewards (75%), and work (67%). However, employers think that the top three employee considerations are opportunity (76%), people (65%), and organization (62%). As regards the factors for leaving, employees identified their top three considerations as rewards (75%), opportunity (71%), and people (69%). On the other hand, employers believe the top three considerations are rewards (78%), opportunity (65%), abd work (49%).

The technology talent landscape in financial services is evolving due to macroeconomic changes and advancements in technology, such as GenAI, according to the report. To remain competitive, financial institutions need to implement flexible talent strategies that prioritize developing their internal workforce. This includes evaluating current skill sets, identifying skill gaps, and investing in continuous learning to build a resilient and adaptable team.

Collaborating with educational institutions, industry stakeholders, and government programmes can help bridge these skill gaps and nurture talent ready for the future. Adopting a people-first approach that prioritizes employee experience, well-being, and engagement is crucial to align workforce capabilities with business objectives and drive sustainable growth, the report adds.

“In order to future-proof an organization and the tech sector, employers need to embrace change and provide employees avenues to develop their skillsets alongside the development of technology,” says Shadab Taiyabi, president of the Singapore FinTech Association, “To thrive in the evolving fintech landscape, we must invest in our workforce and expand development channels to unlock the full potential of the talent pool in an AI-enhanced environment.”