Key Points
- Authorities emphasise retraining and workforce transition alongside automation
- Standard Chartered plans over 7,000 job cuts as AI adoption accelerates
- HSBC says AI will both eliminate and create banking jobs
- Singapore emerges as a hub for responsible AI deployment in finance
ISLAMABAD: Singapore has urged financial institutions to deploy artificial intelligence to create better-quality workforce opportunities and employment rather than simply eliminate jobs, as global banks accelerate automation across operations.
Speaking at the DBS (Development Bank of Singapore) Leaders Dialogue event on Wednesday, Singapore Deputy Prime Minister Gan Kim Yong said the financial sector should use AI to augment human capabilities.
Using AI, they (financial institutions) should find ways to retrain employees and move workers into higher-value roles instead of focusing exclusively on cost reductions, he added.
The remarks come amid mounting concerns over AI-driven job losses in the global banking industry.
Lenders worldwide are rapidly integrating generative AI into compliance, customer service, risk management and administrative functions.
A day earlier, London-based banking giant Standard Chartered announced plans to cut more than 7,000 jobs by 2030 as part of an overall operational overhaul pivoting to artificial intelligence and automation.
The bank said lower-value functions in areas such as compliance, human resources and back-office processing would increasingly be handled by AI-powered systems.
Separately, HSBC Chief Executive Georges Elhedery said artificial intelligence would inevitably eliminate some existing jobs.
However, he had rushed to add, “but it would also create new roles requiring different skills, urging employees to embrace retraining and technological adaptation.”
Singapore has emerged as one of Asia’s leading advocates of what policymakers describe as responsible AI deployment. The East Asian country is combining technological innovation with workforce protections and large-scale reskilling initiatives.
Authorities in the city-state have increasingly promoted an “AI transition with no jobless growth” model.
The Singaporean AI deployment model is aiming at ensuring that automation enhances productivity without triggering widespread unemployment.
A report presented during the DBS event ranked Singapore among the world’s leading AI finance hubs, citing strong regulatory oversight, digital infrastructure and institutional trust.
Banks globally are racing to deploy AI tools across wealth management, fraud detection, onboarding and customer interaction systems.
Financial institutions are focusing on efforts to reduce costs and improve efficiency.
However, analysts warn that the transition could reshape white-collar employment across the financial sector over the coming decade.
