“A federal regulator is signalling it could tighten up rules around the use of artificial intelligence by banks, a practice the watchdog suggests could pose risks to lenders as decisions made by the “black box” technology grow trickier to explain.
‘The behaviour of a black box system is observed only from its inputs and outputs,’ Sarfati wrote. ‘AI models may be technically complex and not transparent, so financial institutions must find solutions to interpret AI models into their business context.'”
“A regulatory market is a new solution to the problem of the limited capacity of traditional regulatory agencies, invented for the nation-state manufacturing age, to keep up with the global digital age.
The answer is for governments to shift their oversight to regulating the regulators. A private regulator would require a license to compete, and could only get and maintain that license if it continues to demonstrate it is achieving the required goals.”
“The report, Ecosystm Predicts: The Top 5 Fintech Trends for 2020, identifies five key trends that will shape the Fintech market during the next 12 months. It highlights the areas of digital banking, digital payments and Insuretech as the domains where exponential growth will take place.