(April 2, 2021) Information on how credit unions and banks use artificial intelligence (AI) in their activities, including fraud prevention, personalization of customer services, credit underwriting, and more is sought under a request for information released this week by NCUA, CFPB and the federal banking agencies.
The agencies are seeking input from a broad audience, including not only financial institutions, but also trade associations, consumer groups, and other stakeholders. The agencies said they want to better understand:
- financial institutions’ use of AI, including machine learning;
- appropriate governance, risk management, and controls over AI;
- challenges in developing, adopting, and managing AI; and
- whether clarifications are needed.
Regarding clarifications, the agencies said they are seeking to learn whether any are necessary from the agencies that would be helpful for financial institutions’ use of AI “in a safe and sound manner and in compliance with applicable laws and regulations, including those related to consumer protection.”
Comments are due June 1 (60 days after the RFI’s publication in the Federal Register).