THE Singapore Fintech Association (SFA) And Accenture have published the sixth edition of Singapore Tech Talent Report 2024.
This paints a picture of a fintech sector that is rapidly adopting generative AI (Gen AI) and grappling with an evolving talent landscape.
The report reveals that 89% of financial institutions (FIs) are exploring or have already implemented Gen AI in 2024, and 65% of them are actively using it in their operations, a significant increase of 27% from 2023.
Interestingly, financial institutions are outpacing fintechs in AI generation adoption.
This high adoption of AI is impacting job roles and skills. 84% of financial institutions and fintechs surveyed believe that AI generation will automate tasks such as code generation and synthesis.
As a result, 61% of respondents consider critical thinking a crucial skill, followed by proficiency in AI (55%) and data analysis (39%).
The report highlights the growing importance of “techno-functional connectors” – individuals capable of bridging the gap between business needs and AI solutions.
The report also notes that 81% of financial institutions and fintechs cited changes in the level of financing as an important factor influencing hiring forecasts for the next 1-2 years.
Despite a volatile macroeconomic environment, 57% of financial institutions expect positive revenue growth, although 32% expect a slower pace.
Fintechs are considerably more optimistic, with 68% forecasting accelerated revenue growth over the next 1-2 years, compared to just 40% of FIs.
However, the report notes that 57% of FIs have frozen hiring or are planning workforce reductions.
The report also highlights a disconnect between employers and employees. 75% of employees prioritize opportunities and rewards when considering a new role, while employers say opportunities (76%), people (65%) and organization (62%) are more important .
This disconnect extends to reasons for leaving a company, with employees prioritizing rewards (75%) and opportunities (71%), while employers focus on rewards (78%), opportunities (65%). ) and work (49%).
To thrive in this environment, the report urges financial institutions and fintechs to adopt flexible talent management strategies, prioritize internal workforce development, and embrace a people-first approach.
This means investing in continuous learning to build a resilient and adaptable workforce.
This means redefining “rewards” to encompass learning and development budgets, health benefits and flexible working arrangements.
Additionally, it highlights flexible leave policies and lifestyle discounts as essential elements of modern rewards programs.
The report highlights that collaboration with educational institutions, industry stakeholders and government programs is crucial to closing skills gaps and developing talent equipped for the future.
Shadab Taiyabi, President of the Singapore Fintech Association, said:
“In order to future-proof an organization and the technology sector, employers must adapt to change and provide ways for employees to develop their skills as technology develops.
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.
Nesan Govender, Head of Talent and Organization for Southeast Asia at Accenture, said:
“Our latest Singapore Tech Talent Report shows that 89% of financial institutions are exploring or have implemented generative AI in 2024. This shift has created growing demand for the “techno-functional connector”: individuals with strong technical skills in AI and essential capabilities in critical areas. reflection, creativity and leadership.
To unlock the full potential of the AI generation and generate transformative impact across the economy, the fintech and financial investment sectors must adapt, upskill and become creators of talent.
Featured image credit: edited from Freepik