FINTECH MANPOWER DEVELOPMENT IN ASIA-PACIFIC FINANCIAL CENTERS WITH A FOCUS ON ARTIFICIAL INTELLIGENCE AND BIG DATA PROFESSIONALS

3 2 Preface PREFACE There is no doubt that Artificial Intelligence (AI) and big data are the future for the financial industry. The COVID-19 pandemic has accelerated the momentum of digitalization as companies are rapidly adjusting to a new business environment. In response, financial institutions today are innovating and adopting new technology, and rapidly apply it to products and services. This trend is only going to continue. Forecasts predict that global spending on AI will increase from US$50 billion in 2020 to US$110 billion in 2024. However, findings also show that there is a huge shortage of AI and big data talent with the right skill sets to fuel this demand. This is especially the case in the financial industry where professionals are further expected to have management, technical, and finance related skills. The talent gap remains wide and significant. In this Report, we completed an in-depth analysis using government-released data and information as well as data from LinkedIn profiles to assess the talent situation across six financial centers in Asia Pacific. While we were aware that not all AI and big data professionals are LinkedIn members, the profile data and their aggregates served as a reasonable proxy to get a snapshot of the rapidly evolving landscape for AI and big data talent pool in the region. The purpose of the Report is to offer a broad stroke comparison to look at what steps each of these six cities has taken to fill the talent gap. Then, it makes recommendations based on those findings and learnings, especially for Hong Kong. A key finding in the Report is that the shortage in AI and big data talent remains the greatest challenge to the digitalization of financial services across the region. As such, the Report recommends that all major stakeholders including the Government, education institutions and financial market participants to better understand the supply and demand of talent, while identifying gaps when formulating and implementing policy interventions. The Report also makes several recommendations on how to close the talent gap. These include greater collaboration between the Government, education sector and the private sector to provide opportunities for education and upskilling, as well as to offer fintech professionals with a clearer roadmap for career development. We hope that readers will find this Report relevant as talent availability will continue to be the single most important factor when it comes to the successful adoption of AI and big data for the foreseeable future. If the region wants to succeed, addressing the talent issue will be a critical priority. Prof. Kar Yan Tam School of Business and Management The Hong Kong University of Science and Technology About HKUST Business School Founded in 1991, the HKUST Business School is young, innovative and committed to advancing global business knowledge. The School has forged an international reputation for world class education programs and research performance, and has received many top global rankings. It is one of the first Asian business schools accredited by both AACSB and EQUIS. The School strives to contribute to the economic and social advancement of the region by developing future leaders who possess an innovative and entrepreneurial spirit as well as a strong sense of responsibility. We also take active steps to promote knowledge advancement in many significant business areas. For more information, please visit www.bm.ust.hk. About Fintech Research Project The Fintech Research Project is funded by the Research Grants Council (RGC) under the Theme-based Research Scheme 2018/19, titled “Contributing to the Development of Hong Kong into a Global Fintech Hub”. The project aims at providing a roadmap for transforming Hong Kong into a global fintech hub through the delivery of policy recommendations, scholarly contributions, and industrial impacts. A team of researchers from HKUST and other universities with expertise spanning finance, information systems, statistics, computer science, accounting, and economics are tackling eight major research tasks that cover blockchain, cybersecurity, risk preference, robo-advising, artificial intelligence / machine learning, systemic risk, financial innovation policy, and manpower development. ©2022 HKUST Business School, The Hong Kong University of Science and Technology All Rights Reserved.