FinTech News

MAS

Singapore scales up FinTech innovation with new global finance & technology network

The MAS has unveiled its latest strategic development in FinTech, the Global Finance & Technology Network (GFTN).
Tabs

General Catalyst leads $25m Series A for revenue automation firm Tabs

Tabs, a leader in revenue automation for B2B businesses, announced today that it has secured $25m in Series A funding.

MIND emerges from stealth with $11m to transform data security landscape

MIND has emerged from stealth alongside the unveiling of its cutting-edge platform designed to protect the most sensitive data within organizations.
Global FinTech investments projected to halve in 2024 amid market caution

Global FinTech investments projected to halve in 2024 as investors scale back

Key Global FinTech investment stats in Q3 2024: Global FinTech deal activity dropped by 57% YoY FinTech investments projected to halve in 2024 as...
Databento

Databento secures $10m investment to fuel global expansion in market data

Databento, an emergent leader in the market data industry, has successfully secured an additional $10m in funding.
BondBloxx

BondBloxx secures $27m to bolster fixed income ETF offerings

BondBloxx Investment Management Corporation, a Larkspur, CA-based provider of bond ETFs, has successfully raised $27m in funding.
The governance gap: AI risks unchecked in financial services

The governance gap: AI risks unchecked in financial services

Financial services companies are rushing to integrate artificial intelligence (AI) into their operations, but many are doing so without adequate governance frameworks or testing procedures.
Financial Services Firms Lag in AI Governance and Compliance Readiness, Survey Reveals Limited Testing and Formal Governance Creates Compliance and InfoSec Risks for Firms Adopting AI Despite eagerness to leverage artificial intelligence, financial services firms lack formal artificial intelligence (AI) governance frameworks, testing protocols, and third-party oversight, according to the 2024 AI Benchmarking Survey, a joint project of ACA Group’s ACA Aponix and the National Society of Compliance Professionals (NSCP), released today at the NSCP National Conference. The joint survey, conducted online in June and July 2024, gathered data from over 200 compliance leaders in the financial services industry around their firm’s use of AI tools and technologies, as well as compliance practices used to manage the risks AI tools and technologies present. According to the survey, firms are missing opportunities to better manage AI risks. It found that only 32% of respondents have established an AI committee or governance group, only 12% of those using AI have adopted an AI risk management framework, and just 18% have established a formal testing program for AI tools. Furthermore, most respondents (92%) have yet to adopt policies and procedures to govern AI use by third parties or service providers, leaving firms vulnerable to cybersecurity, privacy, and operational risks across their third-party networks. “We’re seeing widespread interest in using AI across the financial sector, yet there’s a clear disconnect when it comes to establishing the necessary safeguards,” said Lisa Crossley, Executive Director, NSCP. “Our survey shows that while many firms recognize the potential of AI, they lack the frameworks to manage it responsibly. This gap not only exposes firms to regulatory scrutiny, but also underscores the importance of building robust AI governance protocols as usage continues to grow.” Other notable findings include: 75% of respondents are exploring AI or using it internally, with 37% of firms reporting already having adopted AI tools for internal use and 38% currently exploring AI use cases. The most common use cases for AI were research, marketing, compliance and risk management, and operations support. Among respondents already using AI, 52% indicated they use public enterprise generative AI tools (such as ChatGPT), 50% reported using private/enterprise generative AI, and 43% are using machine learning. Compliance professionals reported that their primary goal for AI use in the compliance program is to improve efficiency (67%). Yet, as 68% of compliance professionals at firms who have already adopted AI tools reported that AI tools have had “no impact” on their compliance program, this goal has gone unrealized. Cybersecurity or privacy concerns around AI tools were identified as the top concern when integrating AI tools into compliance programs (45%). This was followed by uncertainty around regulations or regulatory examinations (42%), lack of talent with AI expertise (28%), and lack of tools that meet compliance programs’ needs (20%) as challenges to AI adoption. “The survey’s most concerning finding is the lack of policies governing third-party AI use,” said Carlo di Florio, President at ACA Group. “Regulators are heavily emphasizing third-party risk management, as we saw with the SEC’s Reg S-P updates, the SEC Cyber Rule, and the EU’s Digital Operational Resilience Act. ACA is actively helping clients build robust AI governance frameworks that align with regulatory demands, ensuring compliance and improving program efficiency. Without these measures, leveraging AI’s potential while remaining compliant will be challenging.” The full results of the 2024 AI Benchmarking Survey will be released during ACA’s and NSCP’s webcast on November 7, 2024. For more information, click here. About the Survey Respondents Governance, compliance, and risk professionals, including chief compliance officers, chief legal officers, and chief information security officers, at over 215 financial services firms of various size and RAUM (regulatory assets under management) participated in the survey. 40% of respondents were from firms with between 11 – 50 employees, with 42% managing between $1 billion to $10 billion in RAUM. Asset managers accounted for 43% of total respondents, with private market firms, alternative investment advisors, the second and third most common types of firms respectively.

Israeli FinTech Melio secures $150m led by US company Fiserv

Melio, an Israeli payments platform, has successfully raised $150m in a funding round spearheaded by the strategic US investor Fiserv. The financing, which values Melio...
AI

How can RegTechs improve the overall security of in-house AI?

The vast and breakneck expansion of in-house AI solutions is leading to many companies scrambling to ensure such solutions are complaint and strongly secure....
Finfra secures $2.5m to boost embedded lending for Indonesian SMEs

Finfra secures $2.5m to boost embedded lending for Indonesian SMEs

Finfra, an Indonesian lending-as-a-service infrastructure provider, has successfully secured $2.5m in a funding round led by Cento Ventures.
Load more

Latest Analysis

News Stories

Mollie enters Italy with tailored local payment solutions for businesses

Mollie enters Italy with tailored local payment solutions for businesses

Mollie, one of Europe’s fastest-growing financial service providers, has announced its official expansion into the Italian market, marking a significant milestone in its mission to streamline payments and money management for businesses across Europe.
Zalando selects Adyen as exclusive local payment partner in Europe

Zalando selects Adyen as exclusive local payment partner in Europe

Adyen, a renowned financial technology platform, has strengthened its strategic partnership with Zalando, Europe’s leading online multi-brand fashion retailer.
NatWest restricts staff from using WhatsApp and Messenger on company devices

NatWest restricts staff from using WhatsApp and Messenger on company devices

NatWest Group has taken a firm step in tightening its internal communication protocols by blocking popular messaging services WhatsApp, Facebook Messenger, and Skype on company devices across the UK.
Empowering school fundraising: Snap! Mobile raises $23m from Runway Growth Capital

Empowering school fundraising: Snap! Mobile raises $23m from Runway Growth Capital

Snap! Mobile, a leading fundraising platform for schools and organizations, has secured a $23m growth investment from Runway Growth Capital.
Are firms prepared for greater ESG regulatory requirements?

Are firms prepared for greater ESG regulatory requirements?

It is now rare for a week to pass without at least one regulator issuing new guidance or updates related to environmental, social, and governance (ESG).
© FinTech Global © Copyright 2024. All rights reserved.

Technology partner
Advanced Vision IT

120,000+ FinTech leaders get exclusive industry stories delivered every week

Download the free AIFinTech100 report

FREE

Download the AIFinTech100 report for 2024 with details on each solution