Implementation of Artificial Intelligence (AI) for Digital Banking

Artificial intelligence (AI) is changing the financial services industry. This technology is used
to determine creditworthiness, identify money laundering, and detect fraud.

AI also helps personalize services and recommend new offers by developing a better
understanding for customers. Chatbots and AI assistants have made it easy for customers to
get answers to their questions, 24/7.

Although there are many advantages of implementing AI, there are some things to watch out
for. Many people have raised concerns about discrimination, privacy, surveillance and
transparency.

Regulations began to form to address the problem. In April, several European countries
released their first legal frameworks to regulate the use of technology. The proposed
regulations cover a wide range of AI applications including credit checks, chatbots, and social
credit scoring, which assesses an individual's creditworthiness based on behavior. Likewise,
the US state in April said it expects AI to be used honestly, fairly and equitably in terms of
decisions about credit, insurance and other services.

To ensure the financial industry addresses such problems, the IEEE recently launched a free
guidebook entitled “Trusted Data and Artificial Intelligence Systems for Financial Services.”
Writing the 100-page manual wanted to ensure that institutions involved in technology
development did not neglect human welfare and ethical considerations.

“This business is a trust business. The main goal of financial services organizations is to use
client and member data to produce new products and services that provide value," said Aryo
De Wibowo MS, a researcher and lecturer in Electrical Engineering at Nusa Putra University
in giving a course for lecturers and students of Electrical Engineering at Nusa Putra
University.

The book contains guidance for addressing emerging risks, such as fairness, privacy in data,
and algorithms to make smarter business decisions while upholding trust.
The handbook also includes roadmaps to help organizations develop their systems, to provide
theoretical frameworks, report documents, the IEEE 7000 series of AI standards and projects,
and the Ethics Certification Program for Autonomous and Intelligent Systems.

ROADMAP AND RESOURCES

This playbook has two parts, a roadmap on how to build trusted AI systems and resources
from experts.

A roadmap helps organizations identify where they are in the process of adopting ethically
aligned and responsible designs: from early stages, through development, through to follow-
up. This section also outlines 20 ways that data and AI can provide value to unit operations
within financial organizations. Called use cases, examples include cybersecurity, loan and
deposit pricing, increased operational efficiency, and talent acquisition. The graphs are used
to break down potential ethical issues for each use case.

The main resource section includes best practices, educational videos, guidelines, and reports
on codes of conduct, ethical challenges, building bots responsibly, and other topics. This
includes reports on the impact of the coronavirus pandemic on the financial services industry.
Additional information includes a list of 84 documents on ethical guidelines.