What impact will data analytics and automation have on the financial sector?
According to a study released by the Institute of Banking and Finance Singapore (IBF) and the Monetary Authority of Singapore (MAS) on 23 April 2019, data analytics and automation will completely change the way financial services are delivered and the job tasks and skills needed in the sector within three to five years.
Conducted by Ernst & Young, the study mapped out a total of 121 job roles across the banking, capital markets, asset management and insurance sectors.
About half the job roles studied will be augmented as individuals leverage technologies to amplify their performance at work, said the study.
One-third of job roles will be transformed. The transformation would require individuals to take on new tasks that require judgement and creativity, as these tasks are less rule-based and less repetitive.
For example, feedback reporting is one of the many tasks of bank customer service representatives today. The execution of the task is often repetitive and time consuming. But with advanced analytics, the representative will be able to do more frequent reporting to identify issues and pain points earlier, helping to improve customers’ experience.
According to IBF and MAS, the study provides a compass for financial institutions and individuals to prepare themselves for the future jobs and tasks, like the one above, as the use of data analytics and automation becomes pervasive.
“The study shows how job tasks will evolve in the financial sector in the next three to five years and what skills that will be needed by professionals to perform these tasks in our financial sector. This will help us – financial institutions, individuals, the Labour Movement and the Government - better prepare and position our workforce for the future,” said IBF Chairman and MAS Managing Director Ravi Menon.
Responding to the study, NTUC Assistant Secretary-General Patrick Tay said: “Emerging technologies are bringing about challenges and opportunities to businesses and workers alike. The study is a practical tool for financial institutions and workers to stay agile and adaptable, learn about the impact of key technological trends and prepare themselves for evolving job roles. We look forward to further strengthen our tripartite partnership to facilitate proactive efforts in helping workers ride the wave of change.”
As part of measures to help more individuals start a career in the new and emerging roles identified in the study, IBF and Workforce Singapore (WSG) also launched the Technology in Finance Immersion Programme (TFIP) on the same day.
The programme will complement existing professional conversion programmes in helping workers acquire new in-demand skills.
The programme was developed by IBF and WSG in partnership with Infocomm Media Development Authority, MAS and industry stakeholders.
Administered by IBF, TFIP will offer training and attachment opportunities in cloud computing, cybersecurity, data analytics and full stack development.
There are currently 70 positions available across seven participating institutions, which include DBS Bank, UOB and OCBC.
Successful applicants will undergo rigorous, structured and on-the-job training with participating financial institutions for up to two years.
Depending on various factors including performance, trainees under TFIP may be offered permanent employment during or after the programme.
