Artificial Intelligence
Artificial Intelligence
AI in the Banking and Financial Sector: Our Perspective at Syngeon
Digital customer experiences in other industries have steadily raised expectations in banking as well. Customers have become accustomed to the benefits of digitalisation and expect comparable standards. To meet this shift, financial service providers need to become hybrid banks. This offers considerable growth potential, increases efficiency and reduces costs .
At Syngeon, we see the exponential progress of artificial intelligence (AI) as a key factor in setting new standards in the banking and financial sector while efficiently meeting growing regulatory requirements. AI enables us to strengthen customer loyalty through exceptional service and, at the same time, to automate compliance processes in order to improve reliability and efficiency.
Strategic Use of AI for Sustainable Success
In a constantly changing regulatory environment, banks and financial service providers are increasingly required to remain compliant without losing their competitive edge. At Syngeon, we are convinced that the strategic integration of AI — for example through chatbots and RegTech solutions — is essential to fully realise optimisation and innovation potential while ensuring compliance with legal requirements.
Compliance and Automation: Efficiency Through AI
Compliance departments face the challenge of managing a wide range of complex tasks, from IT security and sanctions screening through to ESG requirements. Traditionally, these demands lead to growing bureaucracy and rising costs. Our AI solutions offer a way to automate recurring and time-consuming tasks. This allows staff to focus on critical areas while AI processes large volumes of data in real time to identify compliance risks faster and more accurately. One example is AI-supported sanctions screening, where systems automatically flag suspicious transactions and notify staff for further review.
Challenges and Transparency in the Use of AI
Despite its many advantages, the use of AI also brings challenges, such as a lack of expertise and limited transparency in so-called “black box” methods. At Syngeon, we rely on state-of-the-art algorithms that make it possible to open up these “black boxes” and thereby ensure explainability and transparency. This approach not only helps to meet regulatory requirements but also strengthens trust in AI-based systems.
The AI Act: Framework Conditions for the Use of AI in the Financial Sector
The European AI Regulation (AI Act) further defines the legal framework for the use of artificial intelligence in the financial industry. It aims to ensure that AI systems are deployed transparently, safely and fairly. It sets particular requirements for high-risk AI applications, which include many systems used in the financial sector. At Syngeon, we take these developments very seriously and design our AI solutions to comply not only with current legal requirements but also to remain future-proof. Our technologies enable financial service providers to meet the new regulatory requirements while fully leveraging the benefits of AI, without compromising compliance.
Risk Levels for AI Systems Under the EU AI Act
Unacceptable risk
AI systems that are prohibited (AI systems that exploit users’ vulnerabilities / social scoring systems operated by public authorities / manipulative AI systems that exploit human behaviour)
-> These systems are prohibited under Art. 5 of the AI Act.
High risk
AI systems subject to strict requirements (AI-based credit scoring systems / AI systems for the control of critical infrastructure, e.g. water, gas, electricity and heat supply / AI in HR management for the analysis and assessment of applicants / biometric identification and categorisation systems / AI safety components in medical devices, lifts and vehicles)
-> Subject to comprehensive regulation and far-reaching obligations under Art. 6 to 51.
Limited risk
AI systems subject to transparency obligations (AI systems interacting with customers / chatbots, e.g. for customer service / emotion recognition systems / biometric categorisation systems)
-> Under Art. 52 of the AI Act, these are subject to transparency obligations.
Minimal or no risk
AI systems without restrictions (spam filters / AI-supported optical character recognition solutions for extracting invoice data / AI-supported video games / inventory management systems / recommendation systems / systems for predictive maintenance of machinery)
-> Fall outside the scope of the AI Act and are not subject to any restrictions.