BNY Mellon joins forces to create AI framework in Singapore

BNY Mellon has joined a consortium of financial industry market participants to create a framework for financial institutions to promote the responsible adoption of artificial intelligence and data analytics (AIDA), known as Veritas.

The global investment management and investment services major’s effort was announced by Singapore’s Deputy Prime Minister Heng Swee Keat in a recent speech rolling out a national strategy on artificial intelligence (AI) intended to transform Singapore’s economy and improve the lives of its people.

The framework will enable financial institutions to evaluate their AIDA-driven solutions against the principles of fairness, ethics, accountability and transparency (FEAT) that the Monetary of Singapore co-created with the financial industry last year to strengthen internal governance around the application of AI and the management and use of data.

Hans Brown, global head of innovation, BNY Mellon said: “With the prevalence of artificial intelligence and data analytics across financial services, it is essential that we ensure we continue to do the right thing for our clients, the industry and regulators. As an early adopter of these advanced technologies and a provider of critical infrastructure for the world’s financial markets, we believe we can play a significant role in helping to validate the FEAT principles systemically.”

Growing influence in the region

BNY Mellon has been working with the Veritas consortium and wider community to identify, categorize and refine the use cases that will serve as the starting point for this effort, as well as engaging the broader financial services ecosystem to accelerate its execution. BNY Mellon established a Singapore presence in 1974 and has continued to grow its influence in the region.

Dr David Hardoon, special advisor (AI), Monetary Authority of Singapore added: “I welcome BNY Mellon’s partnership and contribution to the Veritas consortium. Veritas aims to provide financial institutions with a verifiable way to incorporate FEAT principles into their AI solutions. BNY Mellon has strong engagements in Asia driving digital initiatives, and is able to support the consortium through sharing its knowledge and expertise.”

This follows the recent news that BNY Mellon has joined the ASEAN Financial Innovation Network (AFIN), which was established in 2018 to facilitate innovation and cooperation between financial institutions and fintechs to digitally transform the banking and financial sectors across southeast Asia to ultimately drive financial inclusion. Last month, Mastercard joined AFIN as a corporate founding member to promote the broader adoption of financial technology innovations within Asia.

The announcement came as BNY Mellon’s Executive Committee arrived in Singapore to host several employee and client activities, reaffirming the company’s commitment to building its presence in the region. BNY Mellon’s head of digital, Roman Regelman, and Hans Brown participated in the recent Singapore Fintech Festival on panels discussing enterprise digital transformation and financial services innovation, with Roman presenting the ASEAN SME Fintech awards to three startups. More than 200 visitors from 126 companies were expected to visit the company’s Singapore Innovation Center, opened in 2016 to learn about the company’s innovation journey and participated in panel discussions on women in innovation and unbiased artificial intelligence.

A survey of treasurers and strategic stakeholders by EY in May this year revealed that Singapore is the preferred regional treasury location in Asia. According to the survey, one of the primary factors in selecting Singapore as the regional corporate treasury location are regional business headquarters in Singapore and the depth and breadth of financial ecosystem.