AI Readiness in Singapore and Hong Kong’s Financial Markets
Recent research from Finastra reveals that financial institutions in Singapore are among the most prepared globally for artificial intelligence and other technological advancements. Meanwhile, Hong Kong stands out as a leader in AI adoption within its financial landscape.
Survey Insights: Singapore’s Financial Sector
The Financial Services State of the Nation 2026 survey indicates robust AI readiness in Singapore, significantly above global averages. Approximately 64% of local financial institutions are currently deploying AI technologies across essential business functions, with another 35% engaged in testing or research. Notably, every institution surveyed expressed intentions to adopt AI, illustrating a strong commitment to technological transformation.
Core Technology and Customer Experience
Regarding foundational systems, an impressive 71% of Singaporean respondents assess their core technology infrastructure as superior to their peers, crediting ongoing modernization efforts and a focus on scalability and data integration. In customer experience, 69% reported that their capabilities in personalization and service exceed those of competitors, with 83% planning investments in enhancing customer interactions, including real-time payments and 24/7 chatbots.
Cloud Adoption and Organizational Readiness
Cloud technology utilization also shows promise in Singapore, where 55% of institutions operate primarily in cloud environments. Despite this progress, there are variations; 30% utilize hybrid models while 13% remain predominantly on-premises. The survey highlights strong organizational preparedness for technological and cultural shifts, with 84% feeling equipped to handle these changes.
Expert Insights on AI Implementation
Chris Walters, CEO of Finastra, emphasizes that Singaporean institutions showcase a successful model for implementing AI at scale, moving beyond isolated pilot projects. “It’s about integrating AI into core operations,” he asserts, “supported by modern infrastructure, databases, and robust governance.” This integrated approach facilitates faster advancement while enhancing security, trust, and overall customer experience.
Hong Kong’s Move to AI Execution
In Hong Kong, the report highlights a transition from AI experimentation to full execution, with 90% of institutions either actively deploying or testing AI technologies. Common applications include customer service automation, risk management, and fraud detection, underscoring a strategic focus on improving operational efficiency and compliance.
Cloud and Security Enhancements in Hong Kong
Cloud adoption in Hong Kong also surpasses that of Singapore, with 86% of institutions utilizing cloud solutions and 50% running most of their software stacks in the cloud. Institutions have made significant upgrades to their infrastructures over the past year, enhancing safety measures. About 72% of respondents believe they hold a competitive edge in reliability and security, highlighting investments in multi-factor authentication, SOAR enhancements, and disaster recovery improvements.
Future Outlook and Excitement for Change
Interestingly, 90% of the Hong Kong respondents expressed enthusiasm regarding the rapid technological and cultural transformations within the financial services sector. Walters concludes that institutions in the region exemplify disciplined AI execution, demonstrating a commitment to responsible innovation and making measurable business impacts while maintaining high security and customer experience standards.