South Korea’s Financial Services Commission (FSC) recently held a kick-off meeting to announce the launch of a new working group tasked with promoting the use of artificial intelligence (AI) in financial services. As part of the government’s KRW 114 trillion ‘New Deal’ policy initiative, the working group will focus on creating more tech sector jobs while advocating for the digitalization of industries post-coronavirus.
Due to the pandemic-driven acceleration in digital transformation, the New Deal project encourages the adoption of AI technology and use of big data to boost financial sectors. AI technology allows for more efficient data management and greater accountability, on top of creating potential jobs and lowering the cost of services. For financial firms, the use of big data can simplify processes such as credit scoring, loan applications, and asset management. The FSC hopes AI will improve systems efficiency while lowering the risks of financial services.
The working group is comprised of officials and experts from both public and private sectors, including specialized AI firms, fintechs, financial firms, and academia. Participants discussed trends surrounding the use of AI in financial services to better design policies in support of the sector. Specifically, the group will target regulations that currently hamper firms’ abilities to develop AI services and propose modifications to them.
Four Key Functional Subgroups:
- Legal & Regulatory Group- tasked with drawing up guidelines to promote the ethical application of AI in financial services.
- Infrastructure Group- tasked with developing an AI data library and AI testbed to support research and development.
- Consumer Protection group- tasked with drawing up standards for consumer protection and remedies.
- Regtech & Suptech Group- tasked with reviewing ways to apply AI towards boosting the effectiveness of regulatory compliance and financial supervision.
“AI technology can help improve the effectiveness, inclusiveness, and accountability while lowering costs in providing financial services,” said the FSC in pointing to the multitude of service areas that will benefit. For the next four months, the working group will deliberate measures with the goal of unveiling its promotional plans for AI by the end of the year.