Summary looks at info request on use of AI

(April 16, 2021) A request for information (RFI) about how credit unions and banks use artificial intelligence (AI) in their activities, including fraud prevention, personalization of customer services, credit underwriting, and more is summarized by NASCUS and posted on the website this week.

The summary is available to members only.

On March 29, the CFPB – along with NCUA and federal banking agencies – issued the RFI seeking information from a broad audience that includes credit unions and other 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 those clarifications, CFPB and the other agencies said they want 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.

NASCUS Summary: Request for Information/Comment on Financial Institutions’ Use of Artificial Intelligence/Machine Learning