There has been quite a lot in the news lately regarding the use of artificial intelligence, or AI, in the banking industry. But there is more to it than just AI – financial institutions are increasingly using algorithms and so-called “big data” in their operations. The benefits are obvious – more effective marketing, more efficient underwriting of credit, and just an overall sense of better knowing the customer.
But there are two sides to every coin; there are significant risks to using AI and nontraditional data when dealing with customers and prospects. The regulatory agencies (as well as Congress and the Administration) are keenly focused on these risks, and are looking very carefully at what the industry is doing. We have fintechs to thank for many of these advancements, but they are not regulated the same way as traditional banks, thrifts, and credit unions, so usage of these exciting tools and strategies must monitored carefully.
What You’ll Learn
- “Algorithmic discrimination” – what is this, and how can we monitor for it?
- Digital redlining – offering your products in the digital world
- The White House’s “Blueprint for an AI Bill of Rights”
- The Facebook settlement – case study in digital advertising
- Regulatory agency and FTC guidance on the issue – many to-dos and recommendations
- Machine learning and related risks
- AI Framework from the National Institute of Standards and Technology
- FHA: algorithm-based tenant screening
- Recent Automated Valuation Model (AVM) proposal – bias in the evaluation process
- Joint statement on AI-based discrimination from CFPB, DOJ, FTC, and EEOC
- Fintech-bank partnerships
Who Should Attend
This interactive session is appropriate for anyone in the institution involved in the marketing, management, and servicing of retail products. As these technologies are pervasive throughout the product lifecycle, most anyone, Board members included, will benefit from this information.