The Monetary Authority of Singapore (MAS) has announced that it is working with key financial industry stakeholders to develop a guide to promote the responsible and ethical use of artificial intelligence (AI) and data analytics by financial institutions. The discussion on deep data and who controls this information has become a hot topic – especially in light of the Open Banking movement in the UK and Europe. The British are first out of the gate having enacted Open Banking rules earlier this year that clearly define users as controlling their own data – not the financial institutions.
“AI and data analytics have huge potential to transform the financial industry for the better. But these technologies can also potentially be misused,” commented Dr David Hardoon, Chief Data Officer of MAS and co-chair of the committee. “ MAS looks forward to working with the industry to encourage innovative uses of these technologies while putting in place the right conditions for their ethical use based on the principles of fairness, accountability, and good governance.
The MAS guide expects to set out key principles and best practices for the use of AI and data analytics, helping institutions to strengthen internal governance and reduce risks of data misuse. The members of this group, the Fairness, Ethics, Accountability and Transparency (FEAT) Committee, expects the guide to be completed by the end of the year. It will cover all segments of the financial sector obviously including emerging Fintech firms.
During Q2, MAS will be collecting industry feedback to help with the creation of the guide. MAS also said it is working closely with the Infocomm Media Development Authority to co-ordinate a broader understanding of AI governance across sectors.
Hsieh Fu Hua, former chairman of UOB group, and co-chair of the FEAT committee, said he expects the guide to be very useful for the financial sector;
“As the industry increasingly adopts AI and data analytics to serve their customers, they must also play their part to ensure that these technologies are used in a responsible manner.”
The Members of the FEAT Group are as follows:
1. David Hardoon (Co-Chair)
Chief Data Officer, MAS
2. Hsieh Fu Hua (Co-Chair)
Co-Founder and Advisor, PrimePartners
3. V K Rajah (Special Advisor)
Senior Counsel and Member of Essex Court Chambers Duxton (Singapore Group Practice)
4. Teo Swee Lian (Advisor)
Non-executive Independent Director, SingTel and Non-executive Independent Director, Avanda Investment Management
5. Raymond Au
Chief Data Scientist and Head of Asia Lab, Allianz
6. Paul Cobban
Chief Data & Transformation Officer, DBS
7. Shameek Kundu
Chief Data Officer, Standard Chartered Bank
8. Richard Lowe
Chief Data Officer, UOB
9. Donald MacDonald
Head of Group Customer Analytics & Decisioning, OCBC Bank
10. Kelvin Tan
Head of FinTech & Data, SGX