Hong Kong, 28 October 2024 — ZA Bank provides the following response to the Government’s announcement of the “Policy Statement on the Responsible Application of AI in the Financial Market” during Hong Kong FinTech Week 2024:
Proposes Five Key Recommendations for AIGC Application
Ronald Iu, CEO of ZA Bank, said: “ZA Bank fully supports the Hong Kong government’s policy statement on responsible application of artificial intelligence (AI) in the financial market, which not only facilitates innovation and development, but also effectively addresses potential risks such as cyber security and data privacy. The Government, together with the financial regulators and the industry, will create a sustainable market environment that not only contributes to the high-quality development of Hong Kong’s financial services industry, but also provides the industry with a clearer legal and regulatory framework, especially in the areas of data security and the application of AIGC.
As a tech-driven digital bank, Hong Kong’s No.1 Digital Bank1 ZA Bank aligns with the government’s forward-looking policy and has been actively exploring various AI applications, such as for account opening and customer services. These innovations have not only improved our operational efficiency but also adhere to the government’s emphasis on AI governance and responsible use. To further contribute to the industry’s evolution, ZA Bank has crafted five key recommendations for the application of AIGC, offering valuable insights for industry stakeholders.
ZA Bank has always attached great importance to user experience and strictly protects the security of users’ funds and data. As the AI technology and application landscape matures, we believe that the future will bring more innovative opportunities to optimise service processes and enhance user interactions, with risk control and compliance requirements remaining our core focus. We look forward to providing smarter and more efficient financial services that meet industry standards in the near future, and helping users enjoy a convenient and secure digital banking experience.”
ZA Bank’s Five Key Recommendations for AIGC Application
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Compliance Accountability and Data Security
Banks should apply innovative technologies in a secure and responsible manner, including the introduction of policies and procedures for risk assessment of the application of AIGC to identify and minimise the risks that may arise. If the training data involves personal information, in addition to obtaining the consent of the data subject, appropriate and adequate institutional and technical security measures must be taken to ensure data security.
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Content Control and Real-time Monitoring
Banks can establish a real-time monitoring and management mechanism to prevent the AIGC system from producing unexpected results or generating content outside the default scope. This will not only effectively enhance service quality, but also ensure that the information provided meets regulatory requirements and customer expectations.
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Human-in-the-loop Principle
If decisions made from the use of AIGC may have a material impact on a customer’s application for, use of, or understanding of a bank’s products and services (such as systems used to assess personal credit), the bank should adopt risk-based human oversight, where innovative technology is complemented by human professional judgement, and, where appropriate, provide customers with routes to provide feedback or seek explanations, as well as options to opt out of the use of AIGC. Banks should have predefined human intervention mechanisms to enable immediate transition to manual or traditional systems in the event of an incident or system failure to ensure continuous, safe and reliable service to customers.
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In-depth Scenario Development and Talent Cultivation
Banks should invest resources to strengthen the talent cultivation for AIGC security design, development and governance, and conduct in-depth technology development for diverse and changing business scenarios to ensure that technological innovations continue to be made with maximised benefits in various types of scenarios.
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Data Quality and System Optimisation
Banks need to put in place a comprehensive data governance mechanism to effectively control any incorrect or misleading content (AI hallucinations) that may be generated by AIGC technology. By optimising data management, model tuning and alerting strategies, the risk of inaccurate information being generated will be reduced, and the accuracy and stability of the system will be continuously enhanced to ensure continuous service quality improvement.
