Industry body to set guidelines for AI, data analytics in finance sector

Singapore

THE Monetary Authority of Singapore (MAS) has assembled a group of industry players to help develop a guide on the responsible and ethical use of artificial intelligence (AI) and data analytics by financial institutions.

The 10-member Fairness, Ethics, Accountability and Transparency (Feat) Committee will be co-chaired by MAS chief data officer David Hardoon and PrimePartners co-founder Hsieh Fu Hua, the financial sector regulator said in a statement on Monday.

Also on the committee are Senior Counsel V K Rajah, Singtel non-executive independent director Teo Swee Lian, Allianz chief data scientist Raymond Au, DBS chief data and transformation officer Paul Cobban, Standard Chartered Bank chief data officer Shameek Kundu, United Overseas Bank chief data officer Richard Lowe, OCBC Bank head of group customer analytics and decisioning Donald MacDonald, and Singapore Exchange head of fintech and data Kelvin Tan.

The MAS is aiming to complete the guide by the end of the year, and will be engaging the industry in the second quarter of the year.

The guide will "set out key principles and best practices for the use of artificial intelligence and data analytics, helping financial institutions to strengthen internal governance and reduce risks of data misuse", the MAS said in a statement.

The MAS is also working with Singapore's Infocomm Media Development Authority on developing a broader understanding of AI governance across sectors.

Mr Hardoon said in a statement: "AI and data analytics have huge potential to transform the financial industry for the better. But these technologies can also potentially be misused. 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."

Earlier laws about data, such as Singapore's Personal Data Protection Act, have focused largely on privacy and data security. But with the rise of machine learning and big data in recent years, artificial intelligence systems have come to play a bigger role in areas that used to rely heavily on human judgment, such as in assessments of credit worthiness.

More recent rules like Europe's General Data Protection Regulation include language that allow people to obtain explanations about the roles that automated systems play in decisions about them, and to opt out of those automated systems if they wish to.