13.08.2024Technology

What’s in the box? A critical look at transparency in AI for banks

AI-powered automation is already being used by banks for processes such as KYC and AML. And more banks will inevitably follow suit as AI technology takes over an increasing number of repetitive banking tasks.

Profile of Krik GunningBy Krik Gunning - CEO
Transparency in AI

But there are growing questions about the security of AI systems and how much human control should be put in place. Transparency is a key factor and involves several considerations such as:

  • The relevance and ethics of data sources.

  • The level of human intervention needed for an optimal balance between speed and control.

  • The ability to explain to regulators and customers how a decision was made.

The stakes are high. Banks are currently making big investments in growing their KYC and AML teams to ensure they are protected against legal issues, their clients are safe, and their own reputations remain intact. However, this resource-heavy approach comes at a high cost, is difficult to scale, and is unlikely to make our financial systems more secure.

In this article, we will look at some of the key considerations for banks around transparency in AI tooling to ensure they are well-equipped to make the best decisions for their unique situations.

Ensure training data is relevant and ethical