Supervisory Tech Requires Major Uplift to Navigate Financial Sector Complexities: CEAI
: Enhanced Supervisory Technology Essential for Navigating Financial Sector Challenges.
Kuala Lumpur, Malaysia, 25 Jan 2024 – As the financial sector grapples with escalating complexities, the Centre for AI innovation (CEAI) asserts the imperative need for a significant overhaul in supervisory technology (suptech) to effectively combat emerging challenges.
In recent years, the financial landscape has witnessed a surge in complexities, particularly concerning financial risks such as money laundering, fraud, and corporate scandals. Examples abound, with high-profile cases illustrating the severity of these challenges. Instances like the Wirecard scandal and money laundering controversies underscore the pressing need for heightened vigilance and advanced technological solutions.
Supervisors and regulators must proactively stay ahead of industry trends to effectively address these challenges. Suptech, or supervisory technology, emerges as the linchpin in achieving this. It involves the strategic integration of advanced technologies to enhance supervisory processes, detect emerging risks, and maintain the integrity of the financial system.
Prof Nazri, CEO/Chairman of CEAI Global and a leading expert in supervision tech (Suptech) and AI, states,
“Addressing the rising complexities in the financial sector necessitates a transformative leap in supervisory technology. Suptech should not merely keep pace; it must lead, ensuring that regulators are equipped with the tools and insights required to navigate this intricate landscape.”
“The intersection of technology and financial oversight is critical. We must not only adapt but innovate in our approach. The collaboration between regulators, supervisors, and advanced technologies like AI becomes paramount.”
CEAI recently engaged in a constructive dialogue with Labuan Financial Services Authority (LFSA), emphasizing key priorities in enhancing supervisory tech capabilities.
The need to transform raw data into actionable insights was underscored, emphasizing the significance of detecting patterns and emerging risks in real-time. Maintaining a delicate balance between attracting businesses and penalizing non-compliance is crucial to uphold the integrity of the financial sector.
The dialogue highlighted the necessity to develop an optimal collaboration model between humans and machines. Regulators and supervisors must harness the capabilities of AI to stay ahead of evolving market and industry forces.
Various types of AI were discussed as potential tools for regulators, ensuring a nuanced approach to supervisory processes. This includes predictive analytics, machine learning, and natural language processing to bolster surveillance and regulatory functions.
CEAI remains committed to fostering these collaborative dialogues, advocating for the ethical integration of AI in financial oversight and urging a proactive stance in adopting supervisory technologies that align with industry complexities.
For media enquiries, contact samantha@ceaiglobal.com.
About Labuan Financial Services Authority (LFSA)
Labuan Financial Services Authority (Labuan FSA) was established on 15 February 1996 under the Labuan Financial Services Authority Act 1996. Labuan FSA is the statutory body responsible for the development and administration of the Labuan International Business and Financial Centre (Labuan IBFC).
The key objectives of Labuan FSA are to:
- Promote and develop Labuan as an international centre for business and financial services;
- Develop national objectives, policies and priorities for the orderly development and administration of international business and financial services in Labuan; and
- Act as the central regulatory, supervisory and enforcement authority of the international business and financial services industry in Labuan.
About Centre for AI Innovation (CEAI)
Centre for AI Innovation (CEAI) Global is a leading global company that was established in 2019 with dual-headquarters in Singapore and Malaysia. The company has established strategic partnerships with organizations in more than 20 countries worldwide. The purpose of CEAI Global is to promote inclusivity in knowledge, education, adoption, creation, venturing into AI investments and implementation of AI solutions.
The main goal of CEAI Global is to provide a platform for individuals and organizations to learn, engage and develop skills related to artificial intelligence (AI) and machine learning (ML). The company aims to target 95% of the workforce who are not skilled in AI and ML and non-technical personnel.
