The Singapore Fintech Association (SFA) and Accenture have released the sixth edition of the Singapore Tech Talent Report 2024.
This paints a picture of a fintech sector rapidly adopting generative AI (Gen AI) and grappling with a shifting talent landscape.
The report reveals a staggering 89% of financial institutions (FIs) are exploring or have already implemented Gen AI in 2024, with 65% actively using it in their operations – a significant jump of 27% from 2023.
Interestingly, FIs are outpacing fintechs in Gen AI adoption.
This surge in AI adoption is impacting job roles and skills. 84% of surveyed FIs and fintechs believe Gen AI will automate tasks like code generation and summarisation.
Consequently, 61% of respondents see critical thinking as a crucial skill, followed by AI literacy (55%) and data analysis (39%).
The report emphasizes the rising importance of “Techno-Functional Connectors” – individuals who can bridge the gap between business needs and AI solutions.
The report also notes that 81% of FIs and fintechs cited changes in the level of funding as a significant factor influencing hiring forecasts for the next 1-2 years.
Despite a volatile macroeconomic environment, 57% of FIs anticipate positive revenue growth, though 32% predict a slower pace.
Fintechs are considerably more optimistic, with 68% forecasting accelerated revenue growth in the next 1-2 years, compared to just 40% of FIs.
However, the report notes that 57% of FIs have implemented hiring freezes or anticipate headcount reductions.
The report also highlights a disconnect between employers and employees. 75% of employees prioritise opportunity and rewards when considering a new role, while employers believe opportunity (76%), people (65%), and the organisation (62%) are more important.
This disconnect extends to reasons for leaving a company, with employees prioritising rewards (75%) and opportunity (71%), while employers focus on rewards (78%), opportunity (65%), and work (49%).
To thrive in this environment, the report urges FIs and fintechs to adopt flexible talent strategies, prioritise internal workforce development, and cultivate a people-first approach.
This includes investing in continuous learning to build a resilient and adaptable workforce.
This includes redefining “rewards” to encompass learning and development budgets, health benefits, and flexible work arrangements.
Additionally, it highlights flexible leave policies and lifestyle discounts as essential components of modern reward packages.
The report emphasizes that collaboration with educational institutions, industry stakeholders, and government programs is crucial to bridging skill gaps and nurturing talent equipped for the future.
Shadab Taiyabi, President of the Singapore Fintech Association, said,
“In order to futureproof an organisation and the tech sector, employers need to embrace change and provide employees avenues to develop their skillsets alongside the development of technology.
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, Talent & Organization Lead, Southeast Asia at Accenture said,
“Our latest Singapore Tech Talent Report shows that 89% of FIs are exploring or have implemented generative AI in 2024. This shift has created a growing demand for the ‘Techno-Functional Connector’—individuals with strong technical AI skills and essential abilities in critical thinking, creativity, and leadership.
To unlock the full potential of Gen AI and drive transformative impact across the economy, the fintech and FI industries must adapt, upskill, and become talent creators.”
Featured image credit: Edited from Freepik
