MNB Probes Risks Related to AI in Banking, Insurance Sectors
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The National Bank of Hungary (MNB) has conducted a topical probe of risks related to the use of artificial intelligence and machine learning in the banking and insurance sectors, the central bank and financial market regulator said on Wednesday, according to a report by state news wire MTI.
In the probe, MNB weighed whether institutions ensure sufficient protection of linked databases and scrutinized their application of quality controls to catch errors and "data poisoning". The watchdog also considered institutions' procedures in the case manufacturer support ceases.
MNB found no compliance shortfalls or violations of existing regulations but made recommendations to several institutions on the management of problems related mainly to incomplete risk analysis and testing.
The central bank found most AI applications in the domestic financial sector are used for identifying clients, opening accounts, marketing, and customer relationship management.
The probe was undertaken based on a government decree on financial sector IT systems and the MNB's recommendation on cybersecurity, but the central bank also set up a special working group to draft methods to exercise oversight of the new area.
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