HKMA’s New Guidelines Aim to Equip Bank Employees for AI Transformation

HKMA’s New Guidelines Aim to Equip Bank Employees for AI Transformation

by May 27, 2024

In response to the rapid integration of Artificial Intelligence (AI) in banking, the Hong Kong Monetary Authority (HKMA) announced updated guidelines focused on manpower development and training in the banking sector.

This initiative reflects the HKMA’s commitment to supporting the industry’s adaptation to AI advancements while ensuring sustainable employment practices.

As AI technology reshapes financial services, banks are enhancing their operational efficiency and customer service through automated processes and data-driven insights.

However, the rise of AI also brings forward concerns regarding the potential displacement of jobs traditionally performed by humans. Learning from past technological integrations, such as the introduction of ATMs, the HKMA notes that while some roles may evolve or diminish, new roles, particularly in AI and data management, continue to emerge.

The updated module of the Supervisory Policy Manual on capacity building, released recently following industry consultations, addresses these changes by urging banks to plan for future manpower needs proactively. It advises banks to enhance their employees’ skill sets, preparing them to work alongside emerging technologies and transition into new roles as needed.

Arthur YuenAI HKMA

Arthur Yuen

“We recognise that AI presents both opportunities and challenges in the banking sector. Our aim is to facilitate a smooth transition for banking professionals, equipping them with the skills necessary to thrive in a digital-first environment. We are committed to working with banks to ensure that advancements in AI do not come at the cost of valuable human capital,”

said Arthur Yuen, Deputy Chief Executive of HKMA.

The HKMA plans to conduct in-depth research in collaboration with the industry, focusing on AI’s impact on job roles and future skill requirements. This research aims to support banks in their strategic planning for manpower and training, ensuring that the workforce is prepared to meet the demands of a rapidly evolving financial landscape.

Additionally, approximately two percent of bank staff successfully transitioned to new roles in 2022 after undergoing targeted training programs, a testament to the proactive steps already being taken by some institutions.

These programmes have enabled frontline staff to move into specialised areas such as wealth management and compliance, demonstrating the potential for career growth and adaptation within the industry.

Looking forward, the HKMA will continue to assess and address skill gaps, particularly in areas such as fintech, green finance, and operations related to the Guangdong-Hong Kong-Macao Greater Bay Area. The upcoming study, set for publication next year, will further refine the industry’s capacity-building strategies for 2026 to 2030.

Featured image credit: Edited from Freepik