Local banking workforce must acquire AI, other relevant skills to remain competitive - Bankers

KUALA LUMPUR - The banking sector is undergoing unprecedented change with the swift evolution of technology and to keep up with the latest trend, the banking workforce must equip themselves with the relevant information and necessary skills, said the Asian Institute of Chartered Bankers (AICB).

Its chief executive, Edward Ling said that the fast use of technology and automation has raised concerns that technology will replace humans, nevertheless, contrary to this idea, it is critical to focus on continual learning, upskilling, and reskilling of the workforce.

"It is more on learning about how to improve your work productivity, your performance by tapping into artificial intelligence (AI) and that is something that eventually all organisations would want to achieve,” he said during a media roundtable session here today.

The session was conducted in conjunction with the third edition of the Malaysian Banking Conference (MBC) themed "Banking in the Era of GenAI - Reshaping Banking, Innovating for the New Economy and Accelerating Sustainability”.

The two-day event was organised by AICB and the Association of Banks in Malaysia (ABM) and drew over 600 delegates from local and international financial institutions.

Malayan Banking (Maybank) Bhd Group Technology, Data, and Digital Human Capital Director Shameem Farouk said from the bank’s standpoint, Maybank is striving to equip its staff with skills which will make them continuously in demand.

"No entity has a grasp or can control the economy and we may not be able to guarantee jobs, but what we can do is prepare the workforce so that in the event of any eventuality, the workforce would have skills that are continuously in demand.

"The reality today is that the talents in technology are so much in demand, there is lack, tech talent is scarce and so, when we upskill our workforce now with newer skills such as digital marketing skills, social media marketing skills, digital market intelligence, they become more valuable and irreplaceable,” she said.

Shameem also said that the current banking workforce needs skills to deal with greater challenges.

"For instance, we receive about 20,000 emails every day, and a new skillset does help them and the bank,” she added.

The roundtable discussion also addressed the incorporation of technology from an Islamic banking perspective, of which the panellist stated that Islamic banking, like conventional banking, necessitates technological capabilities.

Silverlake Group Islamic Finance and Innovative Services chief executive officer Othman Abdullah said on top of technological needs, there is another aspect of syariah requirement, such as syariah audit, which should be done continuously.

"All these require technological tools for those in the syariah departments and syariah committees, that is what we are lacking now,” he said.

Meanwhile, the Malaysian banking industry is at the forefront of a revolutionary transformation as it embraces the power of generative artificial intelligence (GenAI) in redefining banking operations, risk management, customer experiences and capacity building.

According to Accenture’s Banking in AI 2024 report, banks are likely to benefit more from GenAI than any other industry.

Effective adoption and scaling of GenAI could lead to a 30 per cent increase in employee productivity and potentially boost revenue by up to six per cent in three years.

To foster a highly adaptable workforce that excels and remains relevant in a constantly evolving landscape, AICB is also leading the development of the Future Skills Framework for the Malaysian financial sector with the Islamic Banking and Finance Institute Malaysia and the Malaysian Insurance Institute, which will be launched on July 22, 2024. - BERNAMA