The Monetary Authority of Singapore (MAS) is working with banks and technology firms to develop measures to judge customers fairly when artificial intelligence (AI) is used to assess their credit risk.
It is also studying how to ensure that technology employed to market financial products to customers is used appropriately.
These are steps taken in the first phase of a national initiative called Veritas to promote the responsible use of AI and data analytics among financial institutions.
The MAS said yesterday a white paper documenting the metrics and an open-source code to allow financial institutions to adopt the measures will be released by year end.
More banks are using technology to analyse large amounts of data to determine customers’ credit risk and the products to sell to them, the MAS said.
That is why it is crucial that the technology does not systematically disadvantage anyone when determining their credit risk, the central bank said.
Customer marketing is another area to look out for as marketing processes become increasingly digitalised and automated.
The MAS said: “There is increasing scope to use AI tools to analyse customer data and match products or services to customers.”
“It is important that (the) AI solutions recommend the right product to the right customer at the right time,” the regulator added.
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29 May 2020