Singapore's regulatory push to accelerate the adoption of artificial intelligence, or AI, in the financial sector will help banks in the city-state to achieve greater operational cost efficiencies and tap new revenue opportunities, Moody's said May 10.
The rating agency's statement came after the Monetary Authority of Singapore said it was collaborating with three other entities to facilitate research and development of new AI technologies and adoption of AI-enabled products, services and processes. The effort will focus on three areas: developing AI products, matching users and solution providers and strengthening AI capabilities.
Moody's said the push is positive for the profitability of Singaporean banks, including DBS Bank Ltd., Oversea-Chinese Banking Corp. Ltd. and United Overseas Bank Ltd. It will help the banks to collaborate with financial technology firms to enhance AI capabilities in their digital transformation.
DBS Bank, OCBC and United Overseas Bank have already been using AI and analytics across various parts of their organizations and businesses, and Moody's expects them to remain committed to their digital growth strategies going forward.
DBS Bank is a unit of DBS Group Holdings Ltd.