AI’s missing talent

Today, we’ve got the deets on:

• Singapore’s AI hurdle
• Digital banking stealing BNPL’s sheen

Dear Garage reader, 

As artificial intelligence’s (AI) hype reaches a fever pitch, a big hurdle in Singapore’s way is talent. More specifically, the lack of AI talent for startups to snag.

AI’s position at the very tip of cutting edge tech means that the scope of currently available talent here is too narrow for what the industry seeks. More talent pathways are needed to fulfil the needs of AI companies here, and this is a key prong of Singapore’s National AI Strategy.

It’s hard to overstate the impact AI is having on our everyday lives, and even on politics as governments attempt to rein in AI manipulation. Still, Singapore stands more than a fighting chance in this space if companies here focus on niches and localise to the markets they operate in. 

Meanwhile, the rise of digital banking has seen buy now pay later (BNPL) players retreat in emerging markets, where BNPL operations are slightly different from those in developed ones like Singapore. For instance, some players in emerging markets charge interest on their BNPL instalments. Furthermore, the demand for BNPL services is more acute in these markets where there is a lack of access to credit.

However, as BNPL players themselves acquire stakes in banks, many appear to be shifting gears to focus on their digital bank play. WIth banking, these players would be able to garner a higher interest rate on short-term loans while having a low cost of funds, since loans are funded via deposits.

Banking also provides a bigger pool of customers for these players since more people would likely need banking services than BNPL. But as other digital banks have found out, reaching out to emerging markets is easier said than done. 

That’s it from us; check below for more stories. Have a good week!

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