Globally, regulators have come up with frameworks to promote the responsible use of Artificial Intelligence and Data Analytics (“AIDA“) by financial institutions (“FIs“). Singapore endorses a principles-based and technology-neutral approach.
The Monetary Authority of Singapore issued a set of principles in 2018 centred around the key concepts of Fairness, Ethics, Accountability and Transparency (“FEAT Principles“) to guide FIs on the responsible use of AIDA. MAS and the financial industry collaborated on the Veritas project to provide guidance to FIs to to evaluate their AIDA-driven solutions against the FEAT principles.
The Veritas Consortium concluded Phase One of the Veritas project in January 2021 where it developed the fairness principles assessment methodology and applied it to credit risk scoring and customer marketing for the banking sector. Phase Two built upon the methodology in Phase One and developed the assessment methodology for all the FEAT Principles for adoption by banks in credit risk scoring and customer marketing, as well as the insurance industry in predictive underwriting and fraud detection.
This Update provides a high-level introductory overview of the assessment methodologies developed in Phase Two of the Veritas project along with some broad regulatory trends and considerations based on the whitepapers published at the conclusion of Phase Two by the Veritas Consortium.
For more information, click here to read the full Legal Update.
