BNY Mellon joins pledge to promote ethical rollout of AI

Custodian joins group enabling firms to evaluate their AI and data analytics-driven solutions against the principles of fairness, ethics, accountability, and transparency.

By Joe Parsons

BNY Mellon has joined a consortium of financial services provides to create a framework around the responsible adoption of artificial intelligence (AI) and data analytics.

The framework, known as Veritas, was set up by the Monetary Authority of Singapore (MAS) enabling firms to evaluate their AI and data analytics-driven solutions against the principles of fairness, ethics, accountability, and transparency (FEAT).

“With the prevalence of artificial intelligence and data analytics across financial services, it is essential that we ensure we continue to do the right thing for our clients, the industry and regulators,” said Hans Brown, global head of innovation, BNY Mellon.

“As an early adopter of these advanced technologies and a provider of critical infrastructure for the world’s financial markets, we believe we can play a significant role in helping to validate the FEAT principles systemically.”

BNY Mellon will work with the Veritas consortium and the wider community to identify, categorise, and refine the uses cases that will serve as the starting point for financial institutions implementing the FEAT principles into their AI solutions.

Last week, BNY Mellon announced it had joined the ASEAN Financial Innovation Network (AFIN), which was established to facilitate innovation and cooperation between financial institutions and FinTechs, in an effort to digitally transform the banking and financial sectors in Southeast Asia.

The global custody bank has leveraged Singapore and the ASEAN region to rollout new products and solutions based on emerging technologies such as AI. Last year, Brown and his team co-developed a chatbot-to-chatbot communication solution during a 24-hour hackathon at its Singapore Innovation Centre alongside Deutsche Bank.

Earlier this month, BNY Mellon announced partnerships with three FinTech firms and one of the world’s largest hedge funds to leverage new AI, machine learning and risk solutions within its operations.

In collaboration with FinTech firm EZOPS, BNY Mellon has launched an artificial intelligence-based reconciliation and data control solution aimed at better serving clients’ complex data needs. BNY Mellon has already implemented the solution for its alternative investment services business, and the firm is expanding the capabilities across other lines of business.

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