10:30 uur 16-07-2020

Banken moeten uitlegbaarheid en ‘Black Box’-uitdagingen op het gebied van risicobeheer oplossen om te slagen met AI na pandemie, zegt Economist Intelligence Unit Report ondersteund door Temenos

  • AI zal winnende banken scheiden van verliezers, zegt 77% van de ondervraagde bankmanagers tijdens COVID-19
    COVID-19 zal het gebruik van AI intensiveren, waardoor effectief bestuur urgenter wordt
  • In het rapport van de Economist Intelligence Unit worden gegevensbias, “black box” -risico en gebrek aan menselijk toezicht als belangrijkste zorgen genoemd
  • Deze onafhankelijke wereldwijde beoordeling consolideert bevindingen uit 25 regelgevingsrapporten om diepgaande inzichten en richtlijnen te geven over het gebruik van AI in het bankwezen

GENÈVE– (BUSINESS WIRE) – Gegevensvertekening, “black box” -risico en gebrek aan menselijk toezicht zijn de belangrijkste bestuurskwesties voor banken die AI gebruiken, volgens het rapport van de Economist Intelligence Unit (EIU) “Toezicht houden op AI: kunstmatige intelligentie beheren in het bankwezen ”. Het rapport is gebaseerd op een herziening van de wereldwijde regelgevende richtlijnen over AI-risico’s en governance in het bankwezen, uitgevoerd door de EIU namens Temenos (SIX: TEMN), het banksoftwarebedrijf.

De rapporttrends zullen worden besproken op het webinar “Rules of the game changer – governing AI in banking” op 23 juli met CWB Financial Group, TSB Bank en Temenos.

Het rapport benadrukt dat AI een topprioriteit is voor technologie-investeringen voor banken en onthult dat 77% van de bankdirecteuren van mening is dat AI het winnen van het verliezen van banken zal scheiden. AI zal naar verwachting zijn belang behouden na de pandemie, aangezien banken op zoek zijn naar nieuwe technologieën om hen te helpen zich aan te passen aan veranderende klantbehoeften en te concurreren met nieuwkomers op de markt. Het EIU-rapport laat zien dat het waarborgen van ethische, eerlijke en goed gedocumenteerde op AI gebaseerde beslissingen van vitaal belang zal zijn voor banken die AI-technologie gebruiken.

Banks Must Resolve Explainability and “Black Box” Risk Governance Challenges to Succeed With AI Post-Pandemic, Says Economist Intelligence Unit Report Supported by Temenos

  • AI will separate winning banks from losers, say 77% of banking executives surveyed during COVID-19
  • COVID-19 will intensify the use of AI, making effective governance more urgent
  • The Economist Intelligence Unit report identifies data bias, “black box” risk and lack of human oversight as key concerns
  • This independent global review consolidates findings from 25 regulatory reports to provide deep insights and guidance on the use of AI in banking

GENEVA–(BUSINESS WIRE)– Data bias, “black box” risk, and lack of human oversight are the main governance issues for banks using AI, according to the Economist Intelligence Unit (EIU) report “Overseeing AI: Governing artificial intelligence in banking”. The report is based on a review of global regulatory guidance on AI risks and governance in banking carried out by the EIU on behalf of Temenos (SIX: TEMN), the banking software company.

The report trends will be discussed on the webinar “Rules of the game changer – governing AI in banking” on 23 July, with CWB Financial Group, TSB Bank and Temenos.

The report highlights that AI is a top priority for technology investment for banks and reveals that 77% of banking executives believe that AI will separate winning from losing banks. AI is expected to retain its importance after the pandemic as banks look to new technologies to help them adapt to changing customer needs and compete with new market entrants. The EIU report reveals that ensuring ethical, fair and well-documented AI-based decisions will be vital for banks deploying AI technology.

The EIU report highlights key governance challenges and distils regulatory guidance for banks using AI, including:

  • Ethics and fairness: banks must develop AI models that are ‘ethical by design’. AI use cases and decisions should be monitored and reviewed and data sources regularly evaluated to ensure that data remains representative.
  • Explainability and traceability: steps taken to develop AI models must be documented in order to fully explain AI-based decisions to the individuals they impact.
  • Data quality: bank-wide data governance standards must be established and applied to ensure data accuracy and integrity and avoid bias.
  • Skills: banks must ensure the right level of AI expertise across the business in order to build and maintain AI models, as well as oversee these models.

Prema Varadhan, Chief Product Architect and Head of AI, Temenos, commented: “AI is changing the face of the banking industry. It gives banks the ability to process more data in real time, and learn from customer behaviors, helping them to bring operating costs down and hyper-personalize their services. Banks are using AI to transform their customer experiences and back-office operations so ensuring that the technology is deployed ethically is more important than ever. “White box” models, like Temenos’ Explainable AI (XAI), can explain in simple human language how decisions are made and win the trust of regulators and customers alike. As the custodians of customer data and trusted advisors, banks have a responsibility to adopt transparent, explainable AI technology – those that do stand to gain the competitive advantage in the new normal.”

The EIU review cites data bias that leads to discrimination against individuals or groups of people as among the most prominent risks for banks using AI. Commenting in the EIU review, Prag Sharma, Senior Vice President, Citi Innovation Labs, said: “Bias can creep into AI models in any industry, but banks are better positioned than most types of organizations to combat it. Maximizing algorithms’ explainability helps to reduce bias.”

Pete Swabey, Editorial Director EMEA – Thought Leadership, The Economist Intelligence Unit, said: “AI is seen as a key competitive differentiator in the sector. Our new study, drawing on the guidance given by regulators around the world, highlights the key governance challenges banks must address if they are to capitalise on the AI opportunity safely and ethically.”

About the review

The EIU conducted a structured review of 25 reports, discussion papers and articles, and summarized the main issues raised by regulators on the topic of managing AI risks in banking. These documents were published in the last three years by banking and financial sector supervisory authorities, central banks and supranational institutions, universities and consultancies.

The AI regulatory review follows a global research survey released by the EIU and Temenos, entitled “Forging new frontiers: advanced technologies will revolutionize banking,” released in June 2020.

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About Temenos

Temenos AG (SIX: TEMN) is the world’s leader in banking software. Over 3,000 banks across the globe, including 41 of the top 50 banks, rely on Temenos to process both the daily transactions and client interactions of more than 500 million banking customers. Temenos offers cloud-native, cloud-agnostic and AI-driven front office, core banking, payments and fund administration software enabling banks to deliver frictionless, omnichannel customer experiences and gain operational excellence.

Temenos software is proven to enable its top-performing clients to achieve cost-income ratios of 26.8% half the industry average and returns on equity of 29%, three times the industry average. These clients also invest 51% of their IT budget on growth and innovation versus maintenance, which is double the industry average, proving the banks’ IT investment is adding tangible value to their business.

For more information, please visit www.temenos.com.


Jessica Wolfe & Grace Collins
Temenos Global Public Relations

Tel: +1 610 232 2793 & + 44 20 7423 3969

Email: press@temenos.com

Alistair Kellie & Andrew Adie
Newgate Communications on behalf of Temenos

Tel: +44 20 7680 6550

Email: allnewgatetemenos@newgatecomms.com

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