Singapore & Hong Kong lead in AI-ready finance sectors

Singapore's financial institutions rank among the world's most prepared for artificial intelligence and broader technology change, while Hong Kong is among the most AI-ready financial markets, according to new research from Finastra.

The Financial Services State of the Nation 2026 survey found that respondents in Singapore scored above global averages on AI readiness, AI adoption, cloud use, and wider measures of technology and organisational preparedness. In Hong Kong, it pointed to high levels of AI activity across institutions and strong confidence in the region's security and customer experience performance.

Singapore results

In Singapore, 64% of institutions said they are actively deploying AI across key business functions, while 35% are piloting or researching it. No respondents said they have no plans to adopt AI.

The research also highlighted strong self-assessments of underlying systems. Some 71% of Singapore respondents rated their core technology infrastructure as ahead of peers, citing modernisation efforts and work on scalability, data foundations, and integration.

Security and reliability also stood out. Another 71% said they were ahead of peers in these areas, which the survey linked to a focus on controls, resilient architectures, and regulatory compliance.

Customer-facing technology was another area of confidence. Some 69% said their customer experience and personalisation capabilities were ahead of peers, while 8% said they were behind. The survey found that 83% plan to invest in customer experience and personalisation initiatives, including real-time payments and 24/7 chatbots.

Cloud adoption in Singapore appeared advanced but varied by operating model. Some 55% said they host all or mostly in the cloud, 30% operate hybrid environments, and 13% remain mostly on-premise.

The survey also asked how institutions acquire new technology. It found that 55% develop internally, 32% use a blended approach with fintech partners, and 9% rely primarily on partnerships.

On organisational readiness, 84% of Singapore respondents said their organisations are prepared for technological and cultural change, while 7% said they are unprepared.

Chris Walters, CEO of Finastra, said the findings suggest AI has moved into core delivery in the market.

"Singapore institutions are showing what AI execution at scale really looks like," Walters said. "This is not about isolated pilots. It is about embedding AI into core operations, supported by modern infrastructure, strong data foundations, and disciplined governance. That combination enables institutions to move faster, while strengthening security, trust and customer experience - the foundations of long-term competitive advantage."

Hong Kong picture

In Hong Kong, the research described a shift from AI experimentation to execution, alongside sustained investment in technology modernisation. It found that nine in 10 institutions are actively deploying or piloting AI technologies.

Common AI use cases include customer service automation, risk management and fraud detection, workflow automation, credit underwriting and decisioning, and marketing and document intelligence.

Respondents cited several objectives for their AI efforts, including improving accuracy and reducing errors, lowering operational costs, strengthening compliance and regulatory processes, and enhancing risk management frameworks.

Organisational readiness measures were also high, with 80% saying they are prepared or fully prepared for technological transformation.

Cloud adoption in Hong Kong rated higher than in Singapore on this measure. The survey found 86% use cloud solutions, and 50% run the majority of their software stack in the cloud. Many institutions have also modernised significant portions of legacy infrastructure.

Security and reliability received strong ratings. Some 72% said their posture is ahead or significantly ahead of competitors. Areas of investment over the last 12 months included SIEM and SOAR enhancements, fraud detection and transaction monitoring, multi-factor authentication and biometrics, and disaster recovery upgrades. Security investment is expected to rise further in 2026.

On customer experience, 65% said their customer experience and personalisation capabilities are ahead of peers. Areas of focus included real-time payments, personalised recommendations, 24/7 virtual assistants, and personalisation linked to ESG and sustainable investing preferences.

The survey also captured broader sentiment, finding 90% of respondents said they are personally excited about the pace of technological and cultural change in financial services.

Walters said the results show AI deployment at scale across the market.

"Hong Kong institutions are demonstrating what disciplined AI execution looks like at scale," he said. "With modern infrastructure and a clear commitment to responsible innovation, they are turning AI from pilot projects into measurable business impact, while maintaining the highest standards of security, trust and customer experience."