June 18, 2024

HKMA Urges Banks to Prepare for AI’s Impact on Workforce

The Hong Kong Monetary Authority (HKMA) is urging financial institutions to anticipate and address the impact of artificial intelligence (AI) on banking professionals. As AI technology advances, the HKMA emphasizes the importance of planning workforce development strategies to adapt to these changes.

Reskilling Initiatives Show Promise

HKMA deputy chief executive Arthur Yuen highlighted successful cases where financial institutions re-skilled their staff for new roles in response to technological advancements.

Moreover, Yuen noted that some banks have already transitioned 2% of their staff into new roles through training programs. This includes redeployment to areas such as wealth management, risk management, and compliance.

Embracing Collaboration for Future Readiness

Yuen emphasized the need for proactive planning and collaboration within the banking industry to coexist with technology in the AI era. The HKMA updated its Supervisory Policy Manual on capacity building. This encourages banks to set clear directions for workforce development and allocate resources for staff training.

Additionally, the HKMA will conduct a study on AI’s impact on job roles within banking. This will help to guide industry support measures for affected employees.

As the banking sector navigates the evolving landscape of AI, Yuen believes that strategic talent development is essential for sustainable growth. While acknowledging the potential impact of AI on traditional human jobs, Yuen remains optimistic. He believes that collaborative efforts will enable the banking industry to leverage technology for maximum benefit while minimizing disruptions to the labor market.

Image by freepik

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