Monetary Authority of Singapore (MAS) in 2021

Monetary Authority of Singapore (MAS) Partners with Financial Industry to Create Framework for Responsible Use of AI and Data Analytics (AIDA):

The Monetary Authority of Singapore (MAS) was established in 1971. The MAS is the central bank of Singapore and an integrated financial supervisor. To transform Singapore into a dynamic international financial center, MAS works in the financial sector.

 In November 2019, the Monetary Authority of Singapore (MAS) announced that it will work with the financial industry to create a framework for financial institutions to promote the adoption of artificial intelligence and data analytics (AIDA).

 The name of the facility is Veritas and was highlighted by the Deputy Prime Minister of Singapore, Heng Swee Keat, during his speech on ‘Singapore AI National Strategy’ during the Singapore Fintech Festival and the Singapore Week of Innovation and Technology (SFF x SWITCH ) 2019.

 Veritas currently has 25 members from MAS, SGInnovate, EY, and members of financial institutions.

 With this framework, financial institutions can evaluate their ADIA-based solutions. The aim is to help financial institutions provide a verifiable way to incorporate the principles of fairness, ethics, accountability, and transparency (FEAT) into their AIDA solutions.

 The FEAT and Veritas principles are one of the national AI strategies that will help build a progressive and credible ecosystem for the adoption of AI in the financial sector.

 It consists of open source tools that can be applied to different business areas, such as retail banking, corporate finance, and more. Initially, Veritas will focus on customer marketing, risk assessment, and use cases related to fraud detection.

 On 28 May 2020, MAS announced that the first phase of the Veritas initiative will begin with the development of marketing and customer benchmarks. This will help financial institutions confirm the fairness of their AIDA solutions.

These are the two use cases that confirm that the AIDA solutions are confirmed

• Credit risk assessment: helps financial institutions to determine the creditworthiness of creditors. There is a lot of data to analyze. Financial institutions use artificial intelligence tools for this critical function.

• Customer Marketing: To analyze customer data and customize the product or service for customers, it is important to use artificial intelligence tools that help institutions recommend the right product to the right customer at the right time.

Two key members of the Veritas Association, UOB and Element AI, will develop credit ratings, and HSBC, IAG Firemark Labs, and Gradient Institute will develop marketing standards for customers.

 The association will publish a white paper and release an open-source code that will help financial institutions apply capital statistics. Open source code can be integrated into the IT ecosystem of financial institutions to confirm the fairness of their AI solutions. The code is implemented using the APIX platform. The APIX platform is an open architecture platform that supports financial innovation and inclusion around the world. This will help financial institutions and Fintechs to acquire technology and service providers on the platform.

 Mr. Sopnendu Mohanty, CFO of MAS, said: “Responsible use of AI is a prerequisite for greater acceptance of AI in the financial sector. AIDA.” We hope that Veritas will facilitate the adoption of AI in the financial services industry. “

 According to a recent survey by Microsoft and IDC, 52% of local financial institutions have already adopted the technology. Institutions using AI have seen improvements of between 17% and 25% in areas such as better business intelligence, customer engagement, innovation, and higher margins.

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