In an interview with The Digital Banker, Daryl Seetoh, Local Principal at Baker McKenzie Wong & Leow, explores the governance challenges shaping AI adoption, cross-border data transfers and cyber resilience, while highlighting the importance of trusted frameworks in building Asia Pacific’s next generation of digital financial infrastructure.
As financial institutions accelerate their adoption of AI and digital technologies, questions around governance, data, privacy and resilience are becoming increasingly intertwined. For Daryl Seetoh, Local Principal at Baker & McKenzie Wong & Leow, the ability to manage these issues effectively will be critical to building trusted digital financial ecosystems across Asia Pacific.
In a conversation with The Digital Banker, Seetoh shared his views on the evolving role of AI governance, the challenges surrounding cross-border data flows, the growing importance of cyber resilience and the lessons from landmark initiatives such as the PayNow-PromptPay linkage.
AI governance as an enabler of innovation
Seetoh believes that organisations which treat AI governance as a competitive advantage rather than a compliance burden are the ones unlocking the most value. “Organisations getting the most value from AI see governance as an enabler of innovation, not simply as a compliance exercise,” he explained. He emphasised that effective governance builds trust, enabling faster deployment at scale, while ensuring that higher-risk use cases are subject to proper scrutiny and oversight. In his view, embedding governance into adoption strategies, investing in workforce education and maintaining strong data governance are now essential steps for financial institutions seeking to innovate responsibly. This is reflected in the Baker McKenzie report on the Convergence of Risk, where they urged institutions to not only move faster and sharper, but also with consideration for multiple enforcement parameters and jurisdictional-specific disclosure requirements.
On the subject of cross-border data flows, Seetoh pointed to growing geopolitical pressures and diverging regulatory requirements across Asia Pacific. “Geopolitical pressures mean that cross-border data transfer requirements will likely continue to diverge, with some countries emphasising data sovereignty and localisation, while others continue to push for data free flow with trust,” he noted. He highlighted research showing that 87% of Asia Pacific organisations are concerned about being subject to cross-border or multi-agency investigations, highlighting the scale of the challenge. For him, success lies in organisations having a clear view of where their data sits, how it moves and who is accountable for managing governance and risk.
Building trust across borders and through cyber resilience
Furthermore, Seetoh argues that Cyber resilience has become a test of leadership. “Boards need to move from asking whether a cyber incident will occur to asking how well the organisation is prepared to respond when it does,” he said. He stressed the importance of proactive strategies, continuous monitoring and the ability to challenge risk assessments with the support of specialist advisors. Ultimately, he believes leaders must be able to demonstrate that risk-informed controls are in place and that essential services can continue even during a cyber incident.
Reflecting on his experience advising landmark initiatives such as the PayNow-PromptPay linkage, Seetoh said that interoperability is as much a governance challenge as it is a technological one. “Success depended on early alignment among regulators, payment system operators and financial institutions on the legal, operational and risk frameworks needed to support cross-border connectivity,” he recalled. He pointed to interoperable standards such as the ASEAN Model Contractual Clauses as practical tools for reducing friction, lowering compliance costs and enabling scalable digital payment ecosystems.
When asked about the balance between AI innovation and privacy, Seetoh rejected the idea that stricter rules necessarily slow progress. “Responsible AI starts with understanding what data is being used, why it is needed and whether it can be used responsibly and lawfully,” he said. He argued that privacy by design not only builds trust but also reduces risks and makes it easier to deploy AI solutions across different jurisdictions. Supplier due diligence and ecosystem-wide monitoring, he added, are just as important as internal controls.
Seetoh sees the defining challenge of the next decade as managing the intersection of AI, geopolitics and fragmented digital regulation. “The organisations that stay ahead will not be those that predict every technological or regulatory development. They will be the ones that can translate change into confident, coordinated business decisions and adapt as the landscape evolves,” he concluded. For him, organisational agility, AI literacy and operational resilience will be the capabilities that distinguish tomorrow’s leaders.
