The Hong Kong Monetary Authority (HKMA) has picked ten banks and four technology partners to participate in a project to test several use cases for generative artificial intelligence in the financial services sector.
It is worth clarifying that in this case there are more than a dozen scenarios for applying digital intelligence in the mentioned sector.
HSBC, Bank of China (Hong Kong), and Standard Chartered will test several apps powered by artificial intelligence and AI systems in a sandbox. The relevant activities will be carried out within the framework of the plan, which the HKMA first announced in August. The test participants will be onboarded to the dedicated platform of the artificial intelligence supercomputing center, operated by Cyberport. Technical trials are expected to begin early next year.
Other banks that will participate in testing various options for using artificial intelligence in the financial services sector are China Citic Bank International, China Construction Bank (Asia), Citibank (Hong Kong), Dah Sing Bank, Hang Seng Bank, Livi Bank, and Societe Generale. The technology companies that will be involved in the relevant process are Aereve, Alibaba Cloud, Baidu, and FORMS HK.
HKMA deputy chief executive officer Arthur Yuen Kwok-hang stated that there is currently keen interest from the banking industry in the exploration of generative artificial intelligence. It was also noted that the corresponding interest reflects the eagerness and openness of financial institutions of all sizes to utilize novel technologies in their operations and services.
According to the HKMA, a total of 15 artificial intelligence use cases will be tested at the testing ground, supported by technical assistance and supervisory feedback. The cohort was decided based on parameters such as the level of innovation, degree of technical sophistication, expected contribution to the industry, and adherence to fair-use principles in the proposals.
The proposed solutions mainly revolve around improving the effectiveness of risk management, measures to counter fraudulent activity and customer experience through the use of generative artificial intelligence capabilities related to processing huge volumes of documents, unstructured data, and handling cross-media inputs and outputs such as text materials, audio, and graphics.
HSBC, Hong Kong’s largest bank, will test generative AI under such scenarios, which provide, in particular, the ability to deliver tailored financial market insights for sales staff, enhance the fraud investigation process, and support transaction monitoring through real-time analysis of calls.
HSBC Hong Kong’s chief digital officer Bojan Obradović stated that ongoing advancements in artificial intelligence have made generative AI the main theme of the current historical moment. It was also noted that the insights gathered in the sandbox will help shape generative AI advancements and contribute to the development of a regulatory framework that promotes responsible use of this technology.
Bank of China (Hong Kong) will experiment with expanding access to financial services as part of the upcoming testing. This lender will use a digital assistant powered by generative artificial intelligence to achieve the mentioned goal. The specified virtual tool will provide customers with instant information about banking services, products, and promotions. The digital assistant will also give consumers advice on preventing cyber fraud and financial education from HKMA. Moreover, as part of the use of generative artificial intelligence in test mode, the lender will strengthen frontline staff skills in fraud detection.
Stephen Chan, deputy chief executive officer of the specified bank, said that the mentioned exercise will lay a solid foundation for a broader commercial application of generative AI in the financial services sector, contributing to the sustainable development of Hong Kong’s financial ecosystem.
Standard Chartered will participate in testing a large language model in areas such as mortgage application and with an internal information management system. In this case, the goal is to optimize the mortgage loan approval process. For clients, the appropriate scenario of using advanced technology in the financial services sector means that they will obtain results faster and get access to improved operational efficiency.
HKMA will announce the application process for the second batch of participants of the generative artificial intelligence sandbox by the end of the first quarter of next year.
As we have reported earlier, Hong Kong Unveils Rules for Responsible AI Use.
