Reality of a central bank digital currency (CDBC) is coming closer. However the development of a CDBC is said to pose the biggest threat to banks in developed economies like US?
Category: banking regulation
Review of the 2019 World Economic Forum report on ‘Responsible Innovation with AI in Financial Services’
A summary of the 2019 World Economic Forum report on key obstacles preventing AI from being fully adopted and transforming the financial sector.
Regulatory Expectations for use of AI in financial sector
Another month and another publication on Artificial Intelligence (AI) by regulators is out. This time it is by the De Nederlandsche Bank (DNB). The principles
Machine Learning (ML) & Anti-Money Laundering (AML) – made for each other
Money laundering is a massive drain on the world’s financial, legal and economic institutions and current rule based AML controls with a false positive rate of 90% are just not adequate to detect and monitor them. AML is ripe for disruption and innovation through use of Artificial Intelligence (AI) and Machine Learning (ML) and even the regulators are encouraging the same. Key areas of AML where AI and ML have been shown to work through recent published papers are risk scoring; customer segmentation and transaction monitoring using clustering (k-means); classification (support vector machines) and deep learning (graph convolutional networks). These approaches shows us a glimpse of the near future state of AML controls and how new technology can help solve the seemingly insurmountable problem of money laundering as it exists now.
Model Risk – view from Actuarial Industry
View of model risk from the actuarial industry with some unique insights into types of model users and how they impact model risk and expected vs unexpected model risk error.
China’s Central Bank Digital Currency
In an announcement this month that went under the radar due to the US-China trade war grabbing the headlines, the People’s Bank of China (PBoC)Â announced
