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MAS developing guide for responsible and ethical use of AI and data analytics by financial institutions

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:

  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

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.