Digital Banking and FinTech Innovation Cluster (DBFI) of the Luxembourg Bankers’ Association (ABBL), following the outcomes of its recent demo day on Artificial Intelligence for Customer Insights in Finance, held a workshop “Trustworthy Artificial Intelligence (AI) in Banking: Opportunities, Governance & Control for and with AI applications” in cooperation with KPMG Luxembourg.
At the event moderated by Sven Muehlenbrock, Partner, KPMG, ABBL members had a chance to make one step further towards better understanding Artificial Intelligence (AI) and its multifaceted use-cases in the financial services industry. Marc Hemmerling, General Counsel, Digital Banking, FinTech & Payments, ABBL and Jean Hilger, Head, DBFI Cluster, BCEE, have drawn the attention of bankers to recent regulatory and technological trends at the European level that drive the adoption of AI technology by financial institutions, thereby highlighting the fact that a closer contact with national and supranational financial regulators becomes one of the key factors in this innovation process.
Participants of the workshop had a unique opportunity to learn what the Luxembourg regulator, Commission de Surveillance du Secteur Financier (CSSF), thinks about AI in banking and finance. David Hagen, Premier Conseiller de Direction, CSSF and Anna Curridori, Domaine surveillance des systèmes d’informations, CSSF, presented major findings of CSSF’s white paper “Artificial Intelligence: Opportunities, risks and recommendations for the financial sector”. The paper is not setting any regulation for Luxembourg entities wishing to implement AI-based services and processes. It provides insights to interested parties to find right answers to many questions related to the adoption of AI by financial institutions.
CSSF speakers introduced the notion of AI and Machine Learning (ML) and shed light on such important aspects as governance expectations on AI for supervised entities, AI use cases and key risk areas associated with AI (data, governance, ethics, technology, external providers). Presentations by the CSSF were complimented by a practitioner view on AI with Claire Alexandre, Head of Government Relations, EMEA, PayPal, sharing PayPal’s experience in AI and ML with ABBL members. The workshop ended up with an interactive open discussion where all participants of the event had an opportunity to ask questions and exchange thoughts on limitations of AI, key control aspects (such as data governance, human presence in the process), key challenges (fairness, explainaibility, and auditability of AI), AI applicability for financial supervision and further technological advancements in the field.
The ABBL will continue to closely monitor the development of AI and ML and will keep its members updated on the most important trends.
By Andrey Martovoy, ABBL, FinTech Adviser