AI May Move Faster — But Trust Must Run Deeper: Derrick Yip

At an IFPAS event, Mr Derrick Yip, President-Elect of the Insurance and Financial Practitioners Association of Singapore (IFPAS) Executive Council for 2025/2026, shared his perspective on how artificial intelligence (AI) is reshaping the financial advisory profession and why human judgment, trust, and professionalism remain more important than ever.

The Growing Role of AI in Financial Advisory

In his remarks, Mr Yip noted that artificial intelligence has become one of the most significant forces influencing the financial services industry today. With the growing focus on AI highlighted in Budget 2026, he emphasised that the technology is no longer optional, it is now a strategic priority that will affect how financial professionals operate.

AI, he explained, is capable of analysing financial data faster than humans, comparing financial products instantly, generating projections within seconds, and automating routine processes. These capabilities make AI an impressive and powerful tool.

Why Human Judgement Still Matters

However, Mr Yip stressed that technology cannot replace the human role in financial advice.

AI may deliver speed and efficiency, but it cannot understand the emotional concerns that often drive financial decisions. It cannot fully grasp a parent’s fear about a child’s future, navigate complex family disagreements, or carry the professional responsibility required when advising clients on life-changing financial matters.

“In an AI-driven world, our value must go deeper,” Mr Yip said. “AI gives speed. We give direction.”

He emphasised that this direction must be grounded in competence, ethics, and trust — the core pillars of the financial advisory profession.

Mr Yip also spoke about the process of adapting to technological change. Drawing on coaching psychology, he explained that meaningful change rarely happens overnight. Instead, individuals progress through stages — from not yet considering change, to thinking about it, preparing for it, applying new tools, sustaining new behaviours, and sometimes even slipping back.

Such setbacks, he noted, are natural.

“Change is a journey,” Mr Yip said, adding that the most important step is ensuring professionals continue moving forward rather than remaining static.

He emphasised that progress is not about perfection but about consistent forward movement, especially in a fast-changing environment shaped by digital innovation.

Supporting Professional Development in a Changing Industry

Within this context, Mr Yip outlined the role of IFPAS in supporting financial practitioners through industry transformation.

According to him, the organisation’s role is not to push members, but to elevate them through structured professional development.

This includes initiatives such as the association’s Monthly Workshops, which strengthen technical competencies while encouraging the sharing of best practices among practitioners.

Designation programmes like the Fellow Chartered Financial Practitioner (FChFP) were also highlighted as part of a pathway that moves beyond theoretical knowledge toward practical professional application.

In addition, specialist certifications such as High Net Worth (HNW) advisory programmes aim to deepen expertise in increasingly complex client segments.

Raising Standards for the Future

Looking ahead, Mr Yip also shared that IFPAS is looking into developing a new Certified AI Financial Practitioner programme to help members better understand and apply artificial intelligence within their advisory practices.

Importantly, he noted that IFPAS does not operate in isolation. The association works closely with key industry stakeholders to strengthen professional standards across the ecosystem.

This includes collaboration with the Monetary Authority of Singapore (MAS) to align with regulatory standards, the Life Insurance Association (LIA) to enhance industry professionalism, and the Institute of Banking and Finance (IBF) to support structured skills development.

IFPAS also partners with life insurance companies to ensure that training and standards translate into practical implementation on the ground.

Mr Yip emphasised that raising professional standards must be a collective effort.

“When standards rise together, trust rises together,” he said.

Looking ahead, Mr Yip shared that his focus will centre on three priorities: raising professional standards, supporting sustainable upgrading among practitioners, and building structured pathways for professional development.

These pathways, he explained, are intended to ensure that financial practitioners at different stages of their careers — and different stages of technological adoption — can continue progressing and strengthening their professional capabilities.

In today’s environment, he noted, upskilling is no longer simply about accumulating Continuing Professional Development (CPD) hours.

Rather, it is about strengthening competence, credibility, and responsibility in order to serve clients effectively.

“In a fast-changing world, staying still is not stability — it is risk,” Mr Yip said.

He concluded by emphasising that while technology will continue to evolve rapidly, professional standards must rise alongside it, and the foundation of trust between financial practitioners and clients must deepen.

That, he said, is the role of IFPAS — and a journey the profession must take together.

This article is based on a speech delivered by Mr Derrick Yip at the IFPAS Chinese New Year Appreciation Lunch on 26 February 2026.