MAS commences first phase of AI adoption initiative

The consortium is developing a fairness metric for credit scoring and customer marketing.

The Monetary Authority of Singapore revealed that the first phase of the Veritas initiative will commence with the development of a fairness metric in credit scoring and customer marketing, the financial regulator announced in a press release.

Veritas is intended to be a framework for financial institutions to promote the responsible adoption of artificial intelligence (AI) and data analytics.

Two core teams within the Veritas consortium will be taking on the development of the fairness metrics. The first group, UOB and Element AI will develop the metrics on credit risk scoring; whilst HSBC, IAG Firemark Labs and Gradient Institute will develop the metrics on customer marketing.

The fairness metric is expected to ensure that AI-driven decisions do not systematically disadvantage any particular individual or group when determining the credit risk scoring; and for AI solutions to recommend the right product to the right customer at the right time.

The consortium will publish a white paper documenting the metrics and release of an open-source code to enable financial institutions to adopt the fairness metrics in these two areas by the end of this year, according to MAS. Financial institutions can integrate the open-source code into their own IT environment to validate the fairness of their AI solutions.

The open-source code will also be deployed as a service on the APIX2platform, which will allow financial institutions and FinTechs to have access to the service and technology providers on the platform who are able to validate their AI solutions.

A total of 8 new members have joined the Veritas consortium since its announcement in November 2019, bringing the total membership to 25 members.