Reinventing finance in the digital age

OVER the past 15 years or so, the rise of digitalisation and fintech has been one of the most significant forces that has reshaped the financial landscape globally and in Singapore. It has shaped who is in the financial system, how finance flows, and what risks are present.

A significant development in the industry is undoubtedly the use of artificial intelligence (AI). Financial institutions now leverage AI and data to better understand consumers and more effectively deliver personalised experiences, products and services in real time. Functionally, AI has enabled non-traditional credit underwriting, allowing financial institutions to take a more nuanced approach to credit provisioning. It has also improved investment options.

Specific AI-powered tools are already benefiting customers. For example, in Singapore, DBS customers who used the bank’s AI-powered financial planning tool saved twice as much, invested five times more, and were nearly three times more insured than those who did not engage with the tool.