Weekly Update of Global Fintech【Vol.248】

On October 20, 2024, Zhou Yanli, member of the 13th National Committee of the Chinese People's Political Consultative Conference , former Deputy Secretary of the Party Committee of the China Insurance Regulatory Commission and Vice Chairman of the CIRC, attended the “Parallel Forum of FinTech Conference - AI Reinventing Finance and Security Governance” and delivered a speech on the theme of “AI Reinventing Finance and Security, Helping Real Economy Develop in High Quality”. AI reshapes financial and security governance”, and delivered a speech on the topic ‘AI reshapes financial and security governance and helps the real economy to develop in high quality’. In the field of finance and insurance, large-scale modeling technology has significantly improved the efficiency and accuracy of data processing. However, Zhou Yanli also emphasized the possible risks associated with the application of large-scale modeling technology and urged the insurance industry to pay great attention to it. He suggested that the insurance industry should work with technology and security experts to develop national, industry and group standards applicable to the industry to ensure that the application of AI in all aspects of the insurance business meets safety standards.The potential risks faced by the insurance industry when introducing AI technology cannot be ignored. In order to avoid these risks, Zhou Yanli put forward the following suggestions: first, technical standards and specifications should be formulated that are compatible with the characteristics of the industry. The insurance industry should work with relevant technical experts and security experts to formulate national standards, industry standards and group standards applicable to the insurance industry, and build a security standard system covering the entire process from data collection and processing to model training and decision-making outputs, so as to ensure that AI meets the security requirements in every aspect of the insurance business; second, comprehensively build a security technology system for AI in the insurance industry. The insurance industry should strengthen the research of AI security governance technology system, enhance the research of cutting-edge security technology in terms of its own security, functional security, privacy security, and trustworthy security, and promote the transformation and application of key technological achievements through the joint technological research by industry, academia, research and utilization; again, the third-party scientific and technological power should be utilized to strengthen the testing and assessment work. Insurance companies should regularly invite third-party scientific and technological forces to conduct independent security testing and assessment of AI systems in the insurance industry, optimize and improve the system based on the assessment report, and improve the overall security performance of the system. At the same time, insurance companies must ensure that the AI algorithms and systems applied can adequately safeguard the security of customers' personal information and comply with the Personal Information Protection Ordinance and other relevant privacy protection regulations.

(Source: czifi,October 20, 2024)

The Hong Kong Monetary Authority has released a summary of the public consultation on the proposed renaming of “virtual banks”, in which it received a total of 26 submissions, including from the industry or professional organizations, virtual banks and members of the public. Respondents were generally supportive of the proposed name change, with the majority agreeing to the use of the new name “Digital Bank”. The HKMA will revise the guidelines on the authorization of virtual banks and implement the new name “Digital Bank” as soon as possible.

(Source:cs,October 14, 2024)

The New York State Department of Financial Services has issued guidance to help DFS-regulated entities address and combat cybersecurity risks posed by artificial intelligence. According to the guidance, institutions are required to assess and respond to their cybersecurity risks, including those posed by AI, and deploy multiple layers of security controls that provide overlapping protection so that if one control fails, others are in place to respond to cybersecurity attacks in a timely manner. According to the guide, controls and measures to mitigate AI-related threats include risk assessments and risk-based programs, policies, procedures, and plans; third-party service provider and vendor management; access controls; cybersecurity training; monitoring processes to detect new security vulnerabilities; and data management. The guide notes that security risks specific to AI include social engineering, enhanced cyberattacks, theft of nonpublic information, and increased vulnerability due to supply chain dependencies.

(Source:weiyang,October 17, 2024)

In Singapore, the development of digital currencies has made significant progress, with stablecoins becoming the preferred payment method for businesses aiming to enhance and streamline their processes. People are increasingly moving away from traditional fiat currencies and volatile cryptocurrencies to more stable digital alternatives. While the regulatory environment for cryptocurrencies remains a challenge, the world is constantly adapting its framework to accommodate the growth of digital currencies. With their inherent stability and growing acceptance, stablecoins are well positioned to lead this digital transformation.

(Source: mpaypass,October 14, 2024)