Singapore to work with financial firms to ensure responsible use of AI

Four major re/insurers join 17-member consortium

Singapore to work with financial firms to ensure responsible use of AI

Insurance News

By Gabriel Olano

The Monetary Authority of Singapore (MAS) will work with the financial industry, including four major re/insurers, to create a framework for financial institutions to promote the responsible adoption of artificial intelligence and data analytics (AIDA).

Known as Veritas, the framework will enable financial institutions to evaluate their AIDA-driven solutions against the principles of fairness, ethics, accountability, and transparency, MAS said. These principles were co-created by MAS and the financial industry last year, to strengthen internal governance around the application of AI and the management and use of data.

Proper governance around the use of AIDA is critical to fostering trust and confidence in AIDA-driven decisions and financial services, MAS said.

Veritas will comprise open source tools that can be applied to different business lines, such as retail banking and corporate finance, and in different markets. Initially, Veritas will focus on use cases in three areas: customer marketing, risk scoring, and fraud detection. The FEAT principles and Veritas are part of Singapore’s National AI Strategy, which, according to MAS, will help build a progressive and trusted environment for AI adoption within the financial sector.

The Veritas consortium is currently made up of 17 members, including MAS, SGInnovate, EY, and 14 financial institutions. Among these institutions are four major re/insurance firms – AXA, Ping An, Prudential Singapore, and Swiss Re.

The consortium will produce a report on its findings and conclusions in the second half of 2020. MAS added that other organisations interested in participating in the consortium are welcome.

“AI has the potential to transform financial services, but it must be used in a safe and responsible manner,” said Dr David Hardoon, special advisor for artificial intelligence, MAS. “Good governance is essential to AI adoption in the financial industry. With FEAT and Veritas, financial institutions will have the guideposts and toolkit to institute sound AI governance practices. This will pave the way for a vibrant and responsible AI-driven financial centre in Singapore.”

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!