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Finance and GenAI: Balancing Innovation and Safety

Singapore’s Deputy Prime Minister and Coordinating Minister for Economic Policies Heng Swee Keat stated that in the past 12 months, the world has undergone rapid changes and uncertainties. Although the pandemic might be receding, new challenges such as global high inflation, slowing growth, and supply chain disruptions have emerged.

Heng Swee emphasised the importance of finance as the backbone of innovation, growth, and development, particularly in addressing global challenges. They highlight the significant funding gap in achieving net-zero emissions by 2050 and emphasise the role of finance and FinTech in enabling this transition. He also acknowledged the positive impact of FinTech in improving access and inclusion, especially for emerging economies and individuals in need.

At the same time, the Deputy Prime Minister stressed the need to actively manage the risks and downsides associated with rapid innovation. He emphasised the importance of balancing innovation and stability, noting that financial stability is the foundation of financial activities.

He discussed the need for effective supervision, regulation, and risk management in areas such as digital banking services, decentralised finance (DeFi), and emerging technologies like Generative AI (GenAI).

“As a general-purpose technology, GenAI will have pervasive application and is expected to be particularly game-changing for the services industry,” Heng Swee said.

He also identified three critical issues that need to be addressed beyond the initial stage of development: fostering the safe and responsible use of AI, committing to sustainability and the green transition, and building and renewing trust for cross-border digital finance.

Heng Swee believed that the deployment of GenAI in the financial sector requires a comprehensive approach to ensure its safe and responsible use. This involves various considerations and measures to mitigate risks and maximise benefits.

He emphasised the collaborative and open-source approach taken in understanding emerging technologies, starting with the development of the Fairness, Ethics, Accountability, Transparency (FEAT) principles in 2018.

The Veritas Consortium, involving 31 industry players, has further operationalised these principles and will release a Veritas Toolkit 2.0 to support financial institutions in integrating them into their risk governance. The goal is to empower financial institutions worldwide to prepare for GenAI and lead in responsible AI adoption.

In addition, Project MindForge, where data resources and domain expertise from the banking sector are combined with advanced technologies and algorithms from top AI companies. Use case studies, prototyping, and pilots will aid in learning and translation, complementing the AI in Finance Global Challenge recently launched under the Global FinTech Hackcelerator.

With the support of a Cloud company, this platform will consolidate comprehensive resources, including datasets and use cases, to accelerate AI development. It aims to enable individuals to showcase their skills, smaller enterprises to level up their capabilities, and FinTechs and financial institutions to demonstrate market-ready solutions for business opportunities and funding.

Establishing ethical frameworks and principles specific to GenAI is crucial. These frameworks should address issues such as fairness, transparency, accountability, and privacy. Collaborative efforts between industry stakeholders, regulatory bodies, and experts can help define these principles and ensure their implementation.

Regulators play a vital role in overseeing the deployment of GenAI in the financial sector. They should develop guidelines and regulations that govern the use of AI technologies, including GenAI. These regulations should cover areas such as data protection, algorithmic transparency, and consumer protection to ensure compliance and prevent potential harm.

Collaboration among industry participants, academia, and regulators is vital to share best practices, research findings, and lessons learned. Establishing platforms for collaboration and knowledge sharing can help in collectively addressing challenges, identifying emerging risks, and fostering responsible innovation.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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