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In a keynote speech at the 50th Anniversary of the Institute of Banking and Finance (IBF), Deputy Prime Minister Gan Kim Yong highlighted the crucial role that technological innovation plays in Singapore’s financial sector.
Technologies like AI, blockchain, and cloud computing are driving efficiency, enhancing customer experience, and positioning Singapore as a global financial hub. These innovations also support sustainable finance, ensuring the sector’s growth and long-term competitiveness.
Over the past five decades, IBF has been instrumental in shaping the nation’s financial landscape by fostering a highly skilled workforce capable of navigating the challenges of an evolving global economy.
With Singapore now positioned as Asia’s leading financial centre and third most competitive worldwide, the integration of advanced technologies such as artificial intelligence (AI), digital payments, and quantum computing is essential for continued growth.
Singapore’s financial success stems from strategic developments, including the establishment of the Asian Dollar Market in the 1960s and subsequent economic liberalisation. The financial sector, which accounts for 14% of the country’s GDP, continues to expand through innovations in FinTech and sustainable finance.
These advancements have created new opportunities and jobs, with total employment in the sector growing significantly, even during global economic slowdowns. Notably, the number of Singaporeans in senior roles in financial institutions has more than tripled in recent years, emphasising the growth of local talent.
IBF has evolved from a training institute to a standard-setting body for the financial sector, with a focus on skills and workforce development. As a pioneer in reskilling efforts, IBF has contributed significantly to the sector’s professional growth. More than 400,000 individuals have benefitted from IBF-supported training courses, while over 28,000 professionals have achieved certifications under the IBF Standards.
Furthermore, IBF’s initiatives, such as the Careers Connect programme, have helped thousands of individuals transition to new roles and reskill to stay relevant in the industry.
Looking ahead, Deputy Prime Minister Gan emphasised the increasing importance of technology in the financial sector. Disruptive technologies, including AI and digitalisation, present both challenges and opportunities. Singapore’s financial institutions must harness these advancements to drive efficiency and remain competitive in the global market.
The introduction of Jobs Transformation Maps (JTMs), which analyse how technology impacts financial jobs, is a forward-looking initiative. Launched in 2019, the first JTM focused on data analytics and automation, with subsequent JTMs targeting sustainable finance and generative AI. By reskilling the workforce preemptively, Singapore aims to mitigate job displacement due to automation and prepare workers for emerging roles.
Three main areas will drive the financial sector’s future growth: serving as a financing hub for businesses expanding into ASEAN, supporting the region’s transition to net zero through sustainable finance solutions, and contributing to ASEAN’s rapidly growing digital economy.
ASEAN’s sustainable financing needs are projected to reach S$4-5 trillion over the next decade, and Singapore is well-positioned to lead these efforts. Additionally, with ASEAN’s digital economy projected to grow to US$1 trillion by 2030, Singapore’s digitalised financial services sector will play a pivotal role in supporting this expansion.
Talent development remains a priority, with initiatives such as the Polytechnic Talent for Finance scheme encouraging financial institutions to hire and train polytechnic graduates. Programmes like OCBC’s MOBI, an AI-powered career marketplace, and IBF’s Future Skills Accelerator demonstrate the commitment to equipping the workforce with the necessary skills to thrive in a tech-driven future.
Deputy Prime Minister Gan’s perspectives underscored the importance of fostering a diverse talent pipeline and reskilling the workforce to ensure continued success in Singapore’s financial sector. Moreover, IBF’s long-term vision emphasises the importance of adaptability and continuous learning as key drivers of progress and competitiveness in an increasingly digitalised world.
