The Role of Generative AI in Singapore’s Financial Sector

In 2025, generative AI (GenAI) is transforming the financial sector in Singapore, with rapid changes underway. These changes are affecting all kinds of establishments that are part of the same, such as banks, asset management firms, fintech service providers, and regulators. It is doing so by automating reporting, personalising customer interactions, detecting fraud, and optimising investments. In all these ways, GenAI is revolutionising trust and efficiency in the domain. No wonder that AI professionals are in such high demand in the sector. For example, an AI engineer in Singapore receives an average base salary of SGD 6,000 per month, which can range from SGD 6,000 to SGD 7,000, depending on various factors. 

This blog will explore the most prominent use cases of generative AI in finance within the local Singaporean ecosystem. It will also point out the common themes and adoption drivers for such technology in the Southeast Asian country.

Source: Glassdoor 

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Generative AI in Finance: Key Use Cases in Singapore 

GenAI has already made some great strides in the domain of financial services in Singapore and revolutionised various operational aspects of the same. The future of AI in finance thus appears promising in this country.

Fraud Detection and Prevention 

In the context of Singapore’s fraud prevention and detection, generative AI in finance has proven to be of immense value by generating synthetic data that can train fraud detection models. Such synthetic data enables excellent training without compromising the security of sensitive information. Additionally, generative AI generates realistic fraud scenarios that enhance fraud prevention strategies and enable more targeted and practical training, capable of detecting emerging threats.

Also Read: Benefits of Generative AI for Singapore Developers

Customer Service 

Thanks to the advent of generative AI in the financial services sector, customer service in Singapore has undergone a remarkable transformation. It is creating conversational AI chatbots that possess natural language capabilities to enable efficient and personalised interactions with customers.

These chatbots can respond to and understand customer inquiries in real time, which in turn improves engagement and offers tailored solutions. Financial entities are also saving time and improving customer satisfaction levels by leveraging GenAI to create interactions that more closely resemble those of humans.  

Investment Portfolio Management 

Investment portfolio management in Singapore is also undergoing significant changes thanks to the increasing use of generative AI by financial advisors. Financial professionals are using the capabilities of GenAI to generate diverse investment portfolios and tailor them to individual risk profiles. Such a data-powered approach helps optimise investment strategies and aligns them with the financial goals and risk tolerance levels of customers.

Additionally, portfolio managers can now utilise the capabilities of GenAI to recreate different market scenarios, making decisions based on information and adjusting strategies dynamically as they respond to altering market conditions.

Also Read: 10 Advanced Generative AI Techniques to Boost Workflow in Today’s In-Demand Careers

Regulatory Compliance

Singapore has a complex regulatory landscape when it comes to financial services; however, generative AI in finance and accounting has simplified things by streamlining reporting in this area. It automates tasks such as generating compliance reports, helping financial institutions become more accurate and consistent in their determinations.

Not only does such a technology-powered approach save time, but it also minimises the risks that human errors may lead to in crucial compliance work.  

Wealth Management

Generative AI in finance also provides valuable insights to wealth management companies in Singapore, helping them develop innovative investment strategies. Financial professionals are analysing historical data and market trends to uncover hitherto unprecedented investment insights that traditional approaches might not reveal immediately.

This benefit also helps them develop more responsive strategies in line with client objectives and market dynamics.

Also Read: Getting Started with Generative AI: Best Practices for Working Professionals in Singapore

Adoption Drivers and Common Themes for Generative AI in Finance 

Singapore has become a prominent user of generative AI in banking and finance, driven by several key factors. Such usage, in turn, has generated several common themes pervading the industry as well.

Also Read: How Learning Generative AI Closes the Skills Gap for Non-Tech Professionals in Singapore

Build a Future-Ready Finance Career with upGrad’s GenAI Programs 

The GenAI courses offered through upGrad are the best options for students seeking to learn about the benefits of AI in finance, as well as its various applications. They can empower their ideas using GenAI and fuel their creativity, thus shaping the future.

• Master of Science in Data Science, Liverpool John Moores University 
• Master of Science in Machine Learning & AI, Liverpool John Moores University 
• Executive Diploma in Machine Learning and AI, IIIT Bangalore 
• Executive Diploma in Data Science and AI, IIIT Bangalore 
• Doctor of Business Administration in Emerging Technologies with concentration in Generative AI, Golden Gate University 

FAQs On Generative AI in Singapore’s Financial Sector

Q: What job roles are emerging from GenAI adoption?
Ans: The following are some of the prominent job roles emerging because of GenAI adoption:

• AI Product Managers.
• Model Fine-Tuning Specialists.
• AI Solutions Architects.
• AI Ethics and Compliance Specialists.

Q: What regulations apply to GenAI usage in finance?
Ans: The existing rules and regulations regarding the use of GenAI in finance primarily focus on data privacy, fair lending, and consumer protection, along with specific industry guidelines.

Q: How do financial institutions ensure GenAI reliability?
Ans: Financial institutions ensure the reliability of GenAI by combining methods such as robust governance frameworks, human oversight, and careful data management.

Q: What data is required to train GenAI for finance?
Ans: Entities that train GenAI for the financial sector typically use market trends and historical financial data to train such algorithms, providing insights into potential future scenarios. 

Q: Which platforms support GenAI in financial services?
Ans: Amazon Web Services (AWS) is one of the premier platforms that provide financial institutions with the services, infrastructure, AI capabilities, and robust security that they require to use GenAI at scale and drive innovation at an unprecedented rate