DBS, a leading bank in Singapore, has reported a significant increase in economic value from its artificial intelligence (AI) initiatives, reaching a record S$1 billion in 2025. This represents a one-third increase from the S$750 million achieved in 2024. According to Nimish Panchmatia, DBS’s chief data and transformation officer, the bank has made substantial progress in its AI initiatives. This trend is not unique to DBS, as the other two major local banks, OCBC and UOB, are also leveraging AI to drive growth and innovation in Singapore’s financial sector.
The rise of AI in Singapore’s banking industry poses both opportunities and challenges. On one hand, AI has the potential to increase efficiency, reduce costs, and enhance customer experience. On the other hand, it also requires significant investment in talent and technology, which can be a challenge for local banks. As AI becomes more prevalent, there is a growing need for skilled professionals who can develop, implement, and maintain AI systems.
The increasing importance of AI in Singapore’s financial sector is also reflected in the government’s efforts to promote the development of AI and digital technologies. The city-state has invested heavily in initiatives aimed at building a strong ecosystem for AI and fintech innovation, including the establishment of research centers, incubators, and accelerators.
However, the rise of agentic AI, which refers to AI systems that can learn and adapt on their own, poses new challenges for local banking talent. As AI systems become more autonomous, there is a need for professionals who can understand and manage these systems, as well as address potential risks and ethical concerns. To address this challenge, local banks and educational institutions will need to work together to develop training programs and curricula that focus on AI and digital skills.
Overall, the growth of AI in Singapore’s banking industry is expected to continue, driven by the potential for increased efficiency, innovation, and customer engagement. However, it will require significant investment in talent and technology, as well as a focus on addressing the challenges and risks associated with the rise of agentic AI.