SG’s financial sector welcomes automation amidst economic uncertainty

20% of staff have noted resistance to the overall process of automation.

More than half (56%) of financial institutions are turning to process automation as a response to challenging economic conditions, recent data from SS&C Blue Prism revealed. 

An additional 37% are leveraging digital transformation to enhance customer interactions, aiming to provide better service during turbulent times for consumers.

In Singapore, where concerns about inflation and economic uncertainty are prominent, 32% of financial organizations are prioritising operational productivity. Of those surveyed, 29% identified higher costs as the most significant impact of economic uncertainty, while 27% cited reduced revenue.

Financial institutions are turning to automation to optimize their operations and thrive in challenging economic conditions. 

The primary benefit of automation, according to these institutions, is cost reduction through the elimination of high-volume and repetitive tasks (42%). Improving staff efficiency by reducing errors (37%) ranks as the second most important benefit, slightly below the Asia Pacific (APAC) average of 42%. Additionally, nearly a third believe automation will enhance speed to market (32%), while 29% expect it to enhance compliance, security, and quality assurance.

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Most employees are embracing the introduction of automation, with only 20% of financial institutions reporting staff resistance during implementation.

Across the region, financial organizations face key workforce challenges, including skills shortages (38%) and a lack of technical support staff (31%). In Singapore, however, financial organizations highlight staff motivation (29%) and skills shortages (27%) as their primary challenges.

Automation is seen as a solution to these challenges, with 27% of respondents identifying lower staff attrition as a key benefit of automation, as it enables employees to focus on high-value work.

There is a high appetite for greater automation adoption in the financial sector, with 42% of organizations believing that automation is already widespread in financial services. However, one in five (22%) believes that the rollout has been too slow, indicating a desire for further automation implementation.

The study surveyed 41 decision-makers at financial institutions in Singapore and an additional 126 key decision-makers in Australia, Hong Kong, India, and Thailand.