BoG develops AI rules for financial sector
The Bank of Ghana (BoG) is developing a directive to regulate the use of artificial intelligence (AI) in the financial sector, as it seeks to promote innovation while addressing emerging risks.
The Bank of Ghana (BoG) is crafting a regulation to oversee the application of artificial intelligence (AI) within the financial industry, as it strives to encourage innovation while mitigating emerging risks. Bank Governor Dr. Johnson Pandit Asiama revealed that AI holds the potential to enhance credit evaluation, fraud detection, customer service, risk management, and operational efficiency in the financial services sector.
However, he cautioned that this technological advancement also introduces risks such as data quality issues, model risk, cybersecurity vulnerabilities, and consumer protection concerns. "Our approach will promote responsible experimentation and innovation while ensuring proper governance throughout the AI lifecycle," Dr. Asiama emphasized during a speech at the 43rd Annual General Meeting of the Ghana Association of Banks in Accra.
This proposed directive aligns with the bank's larger objective to fortify regulatory and supervisory structures as digitalization revolutionizes financial services. Dr. Asiama highlighted that digitalization has bolstered efficiency, convenience, and financial inclusion, yet it has also spawned fresh avenues for risks to arise.
He cited cybersecurity, digital fraud, data protection, third-party dependencies, and cloud computing as areas garnering heightened supervisory scrutiny. The governor disclosed that the bank continues collaborating with the Ghana Association of Banks and industry stakeholders to facilitate the implementation of its revised Cyber and Information Security Directive.
Additionally, the bank plans to conduct thematic reviews to assess the execution of the revised directive. Dr. Asiama urged bank boards and senior management to regard cybersecurity and operational resilience as core business risks rather than mere technical considerations. He further stressed that regulatory and supervisory frameworks must continually evolve to adapt to technological changes and the growing interconnectedness of financial risks.
The governor implored banks to cultivate robust risk-management cultures and sustainable business models to ensure that innovation contributes to the development of a resilient financial sector.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
