APRA Grants Approval for Banks to Implement AI
Australian Financial Review
SKIPPED
Details
- Date Published
- 22 May 2024
- Priority Score
- 2
- Australian
- Yes
- Created
- 8 Mar 2025, 01:04 pm
Description
A senior APRA member has told an industry event that banks with proper governance systems and technology in place should feel confident proceeding with advanced AI.
Summary
The Australian Prudential Regulation Authority (APRA) has signaled its approval for banks to incorporate advanced AI technologies, provided they have appropriate governance systems in place. This regulatory stance is expected to enable banks to cut costs and enhance customer service, potentially increasing shareholder returns. This development could influence AI adoption across the financial sector, reflecting a measured approach to integrating AI while ensuring regulatory compliance. The emphasis on governance underscores an understanding of AI's transformational potential balanced by the need to mitigate associated risks.
Body
CompaniesFinancial ServicesAIPrint articleJames EyersSenior ReporterMay 22, 2024 – 1.41pmSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginThe prudential regulator has allowed banks to experiment with and adopt advanced artificial intelligence technology, calling out its potential to reduce costs, improve customer service and boost shareholder returns across the sector.The more accommodative regulatory position on the AI rollout in banks was fleshed out by Australian Prudential Regulation Authority member Therese McCarthy Hockey in a speech on Wednesday morning, and comes before The Australian Financial Review AI Summit next week.Loading...James Eyerswrites on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of AfterpayConnect withJamesonTwitter.EmailJamesatjeyers@afr.com.auSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreAIBig fourAPRARegulationData analysisAI SummitFetching latest articlesOlympic weightlifting is hard. This boss uses the 1pc rule to get it doneLucy DeanOut-of-control watch price rises give housing a run for its moneyKnow your craft: How the biggest airlines rate at the pointy endJun Bei Liu: How I learnt to speak upSally Patten and Lap PhanThe four actor ‘tricks’ giving executives more confidence‘We’ll fight’: Alex Waislitz on family battles and bad betsA last-chance tote bag and a groovy case for trumpetersEugenie KellyThis machine can bring out the creative streak you never knew you hadThis data-driven wellness retreat is a haven for high-flyersBillionaire Nicola Forrest appoints UBank boss to run family officePrimrose RiordanVictor Smorgon’s star fundie eyes 50pc returns for new fundForrest family powerbroker had alleged role in big Fortescue decisions