MAS developing guide for responsible and ethical use of AI and data analytics by financial institutions
Singapore’s central bank and financial regulatory authority, the Monetary Authority of Singapore (MAS) is working with key industry stakeholders to develop a guide to promote the responsible and ethical use of artificial intelligence (AI) and data analytics by financial institutions.
The guide will set out key principles and best practices for the use of AI and data analytics, helping financial institutions to strengthen internal governance and reduce risks of data misuse. The guide is targeted for completion by the end of the year. It will cover all segments of the financial sector, including FinTech firms.
MAS has brought together a group of thought leaders and practitioners in data analytics in the financial sector to co-create the guide. The Fairness, Ethics, Accountability and Transparency (FEAT) Committee, has the following members:
- David Hardoon (Co-Chair), Chief Data Officer, MAS
- Hsieh Fu Hua (Co-Chair), Co-Founder and Advisor, PrimePartners
- V K Rajah (Special Advisor), Senior Counsel and Member of Essex Court Chambers Duxton (Singapore Group Practice)
- Teo Swee Lian (Advisor), Non-executive Independent Director, SingTel and Non-executive Independent Director, Avanda Investment Management
- Raymond Au, Chief Data Scientist and Head of Asia Lab, Allianz
- Paul Cobban, Chief Data & Transformation Officer, DBS
- Shameek Kundu, Chief Data Officer, Standard Chartered Bank
- Richard Lowe, Chief Data Officer, UOB
- Donald MacDonald, Head of Group Customer Analytics & Decisioning, OCBC Bank
- Kelvin Tan, Head of FinTech & Data, SGX
MAS will engage with the industry to obtain views and feedback on the proposed guide during the second quarter of 2018. MAS is also working closely with the Infocomm Media Development Authority (IMDA) to co-ordinate a broader understanding of AI governance across different sectors.
Mr Hsieh Fu Hua, former chairman of UOB group, and co-chair of the FEAT committee, said, “The guide would be very useful for the financial industry. 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.”
Dr David Hardoon, Chief Data Officer of MAS and co-chair of the committee, said, “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.”
Dr David Hardoon as appointed as the Chief Data Officer and Head of the new Data Analytics Group (DAG) at MAS. The DAG was set up last year as part of MAS’ efforts to position itself and the financial sector for the digital economy of the future. The Group leads the regulator’s efforts to leverage data analytics and unlock insights, enhance the supervision of financial institutions, make regulatory compliance more efficient for financial institutions, and improve work efficiency across the organisation.