Hong Kong Monetary Authority Calls for Manpower Development in Banks Amid AI Evolution
The growing adoption of artificial intelligence (AI) has challenged financial regulators to assess the benefits and shortcomings of emerging technologies in the industry.
In a May 23 update, the Hong Kong Monetary Authority (HKMA) revealed plans to conduct an extensive study to examine the impact of AI in the banking industry. The research will assess whether AI adoption will affect professionals’ productivity in the banking industry.
Impact of AI Development on Banking
As fear escalates that AI will replace some operation jobs, the HKMA has different perspective. The financial regulators project that AI will redefine the conventional banking system and create new job opportunities.
The regulators noted that to cope with AI advancement, it was essential to consider reskilling the employees to fit the future market. The regulator encourages banks and financial institutions to invest in upskilling to prepare employees for new opportunities.
The HKMA noted that the growth of AI has affected the banking system, forcing financial institutions to embrace advanced technologies. A statement from the chief deputy executive at HKMA, Arthur Yuen, revealed that some of the best-performing financial institutions have trained their workforce to cope with the tech changes.
HKMA Urges Professionals to Upskill to Cope With AI Development
After talking to several executives of renowned banks, Yuen noted that 2% of the trained labor are considering changing careers. The official stated that individuals who have successfully changed their career from banking have joined other departments in wealth management, compliance, and risk management.
With AI’s growing adoption, the HKMA has advised banks and financial institutions to welcome emerging technologies positively. Yuen restated the need for banks to invest in workforce development to remain ahead of the curve.
The HKMA believes that advancing the employee’s skills and expertise will enable banks and financial institutions to remain sustainable amid AI evolution. With the rapid technological changes, the HKMA was obliged to revise its supervisory policy manual on capacity building to accommodate emerging technologies.
The regulators encourage local and foreign banks to align the company vision with employees objectives.
Factors Contributing to High Adoption of AI
Citing the dynamism in the financial industry, the HKMA has advised banks and financial institutions to implement innovative approaches that identify and address professional gaps accordingly. Also, banks are urged to allocate a certain amount of funds to offer employees opportunities for continuous learning.
The HKMA believes that skill development will enhance productivity and employee engagement at the workplace. The agency noted that the benefits of AI technology outweigh its shortcomings.
This forced the HKMA to consider conducting a study to examine the role of AI technology in the banking industry. In the study, they will identify professionals in banking affected by AI development and recommend suitable roles for employees to consider transitioning to.
The HKMA report urged professionals in the banking field to consider advancing their skill sets to build sustainable careers. The regulators noted despite the high adoption of AI in most industries, the banking industry remains undisrupted.
Also, the regulators observed that AI has not affected traditional banking career. The report challenges banks and financial institutions to join forces to tap into AI technology’s numerous benefits.
Even though AI will not replace humans, the HKMA believes that upskilling in the banking sector will equip employees with relevant skills.
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