At the European Banking Federation, we believe that AI provides great opportunities to enhance customer experience, democratize financial services, improve cybersecurity and consumer protection and strengthen risk management. Banks continue to invest in research and development of AI applications and the technology has come to play an integral role in a range of activities. As AI is an evolving technology, there is a need to ensure that the regulatory environment is fit for the use of AI by promoting innovation and legal certainty and maintaining a high level of consumer protection is paramount. Fostering a broad dialogue between all relevant supervisors and regulators on AI developments and their impact is a key priority for the banking sector and should be encouraged to ensure consistency and alignment across Europe and across sectors.
The EBF continues to contribute to the work of the European Commission’s High-Level Expert Group on AI, which looks to support the implementation of the European Strategy on AI.
AI FOR SECURITY PURPOSES: FRAUD PREVENTION: AI is providing great assistance in the detection of fraud and other suspicious activities that are linked to financial crime generally.
Banks traditionally divide fraud into two main categories: external (e.g., attacks on the bank or its clients related to money transfer, identity fraud, online payments, etc.) and internal fraud (e.g., malevolent actions from employees).
A Fraud Detection System (FDS) copes with such threats through feature engineering, supervised, unsupervised, and adaptive learning, by collecting transactional data, analysing it and learning from it, or through the interaction with FDS maintainers. It is able to identify suspicious events and limit fraudulent activities by suspending or blocking said activities. Fraud prevention proves to be even more efficient when customer profiles are created.