Technology: The Monetary Authority of Singapore is tasking two risque teams, made up of banks and players in the artificial intelligence sector, to develop measures to ensure “responsible use of AI”for credit risk assessment and marketing to customers.
Singapore has launched efforts to develop a framework to ensure the “responsible” adoption of artificial intelligence (AI) and data analysis in credit risk assessment and customer marketing. Two teams of banks and industry players have been tasked with establishing parameters that can help financial institutions ensure the”fairness”of their artificial intelligence and data analysis tools in these cases.
The Monetary Authority of Singapore (MAS) said a white paper detailing the measures would be published by the end of the year, as well as an open source code to allow financial institutions to adopt the measures.. These organizations will then be able to integrate open source code into their own computer systems to assess the fairness of their AI applications, the industry regulator said on Friday.
She added that open source code would be deployed in the global online market and on the sandbox, API Exchange (APIX), which allows fintech and ISP companies to integrate and test applications via a cloud-based platform.
With the launch of its national artificial intelligence (AI) strategy, as well as a series of initiatives,the Singapore government aims to encourage the adoption of AI to generate economic value and provide a global platform on which to develop and test AI applications.
Financial institutions are increasingly using AI
en Because financial institutions need to analyze a lot of customer data to assess borrowers’ creditworthiness, these organizations are increasingly using AI tools to do so, the Singaporean authority said. “It is crucial that decisions made using AI do not systematically disadvantage individuals or particular groups in determining credit risk ratings,” she added.
Customer marketing processes are also becoming digitized and automated, paving the way for the deployment of artificial intelligence tools to analyze customer data and match products and services to consumers,DSS said. It is necessary for artificial intelligence applications to recommend the right products to the right customers at the right time. d’intelligence
The Veritas consortium at the helm
According to the Singapore Monetary Authority, the two teams working on this framework are part of the Veritas consortium, which is part of Singapore’s national Singapour AI strategy and is responsible for providing financial institutions with a verifiable way to integrate the principles of fairness, ethics, accountability and transparency into their AI and data analytics tools. The consortium currently comprises 25 members, including MAS, DBS Bank, Microsoft, Bank of China, BNP Paribas and Standard Chartered Bank.
A team led by UPB and Element AI would develop credit risk rating measures, while a second team including HSBC and IAG Firemark Labs and Gradient Institute would work on customer marketing measures.
“Responsible use of AI is a prerequisite for greater adoption of AI in the financial sector. Veritas is the first industry-wide collaboration l’échelle to provide a mathematical way to validate AI and data analytics solutions against the principles of fairness, ethics, accountability and transparency. We hope that Veritas will accelerate the adoption of AI in financial services in the right direction,” said Sopnendu Mohanty, Director of maS’s Fintech Division.