The Fintech Effect On Finance Jobs

The path to carve a sustained career in finance requires a rethink at a time of widespread automation and the smartening of legacy systems with artificial intelligence. More than 10,000 “front-officer producer” jobs were lost within the top 10 banks in the U.S. since 2011, according to research firm Coalition Ltd. Not forgetting, too, the diminished presence of floor traders on Wall Street who were once the symbol of a high-octane stock market.

The Harvard Business Review calls this upending of the manpower order a “sobering prospect” for finance in light of the thousands of jobs across the world put at risk. All is not lost. With a technologically enabled finance sector coming of age, new jobs will also be created.

From the World to the Little Red Dot

As an open economy, Singapore’s finance sector is bracing itself to accommodate a similar shift in manpower demand. The Monetary Authority of Singapore reported a surge of 2,800 jobs in 2016, stemming mostly from technology, compliance, risk management, insurance, alongside asset and wealth management. Back office functions such as operations, information technology and technical support experienced downsizing.

So where do these signposts point to? For all the cost-savings machines provide to the bottom line, finance, like any service sector, still needs the distinguishing touch of humans to lend differentiation against competitors. Ravi Menon, the managing director of the Monetary Authority of Singapore, said the industry will use “robo-advisory and algorithm-type services,” albeit with a “human interface.”

Why Humans Still Matter

Advancements in artificial intelligence currently lack the level of cognition to weigh ethical dilemmas and grey areas, especially those affected by a fast-changing compliance landscape. New regulations including the enactment of MiFID II in Europe further complicate the way Singapore-based financial institutions deal with their overseas counterparts. The stakes are too high to let robots take responsibility as fines and sanctions await those that fail to comply.

In an unforgiving industry where clients and investors take off the moment red flags get raised, it is logical to assume automation will be weaved in cautiously, with people at the centre of accountability.