UnionBank x Monetary Authority of Singapore: For Better Artificial Intelligence in Finance Sector

The nation is likely to see the adoption of artificial intelligence (AI) intensifying in the coming months or years. UnionBank is at the forefront of this.

This possible development comes with the partnership between Aboitiz-led UnionBank of the Philippines and the Monetary Authority of Singapore.

According to Philstar, this partnership aims to hasten and improve the adoption of AI in the Philippines.

According to Henry Aguda, chief technology and operations officer of UnionBank, this partnership will be laying out the international standards that must govern the ethical use of AI.

Aguda is also the chairman of UBX, the fintech unit of UnionBank.

He explained that UnionBank aims to integrate the Veritas principles and framework, but not only for the benefit of the bank.

Moreover, he saw it as one way to improve AI adoption in this country.

UnionBank Believes in Digital Transformation

The chairman added that UnionBank is a firm believer that digital transformation can provide critical benefits.

Digital transformation can lead to improved regulation technology, enhanced consumer data protection, and better law compliance.

David Hardoon, the advisor for AI of MAS, however, issued a warning.

According to him, none of the intended benefits of this partnership are likely if there is no good governance.

Good governance is a critical need when adopting AI in any financial industry.

Hardoon stated that while it is undeniable that AI can transform financial services, there must be processes in place that guarantee its ethical and responsible use.

The Veritas Framework

The MAS is responsible for the formation of a consortium of 17 international institutions, one of which is Unionbank.

The consortium is designed to create a framework for the responsible use and adoption of Artificial Intelligence and Data Analytics.

This is called the Veritas Framework.

The framework can give proper governance to facilitate trust and confidence in AI usage in the financial sector.

The Veritas Framework will also allow for banks and other financial institutions to assess and manage their AIDA-driven solutions.

Moreover, these solutions must observe fairness, ethics, accountability, and transparency (FEAT).

Doing this makes better cross-border protection compliance possible.

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