January 17, 2024 – 2:30 PM Eastern Time
FinRegLab hosted a webinar with senior federal financial regulators to discuss the growing use of artificial intelligence and machine learning in financial services, including credit underwriting. The webinar covered the following topics:
- How use of AI/ML is evolving in financial services, including recent developments such as generative AI;
- Consumer protection & safety and soundness concerns with regard to AI/ML applications, particularly for credit underwriting;
- Model transparency as a recurring concern for AI/ML applications;
- Relevant regulatory tools and initiatives.
The panel was moderated by FinRegLab CEO Melissa Koide and included the following participants:
- Patrice Alexander Ficklin, Director of the Office of Fair Lending & Equal Opportunity, Consumer Financial Protection Bureau
- Grovetta Gardineer, Senior Deputy Comptroller for Bank Supervision Policy, Office of the Comptroller of the Currency
- David Palmer, Lead Supervisory Financial Analyst in the Division of Banking Supervision and Regulation, Federal Reserve Board
- Keith Ernst, Associate Director, Division of Depositor and Consumer Protection, Federal Deposit Insurance Corporation
Since FinRegLab sat down with stakeholders and federal regulators in fall 2020, the use of AI/ML in financial services has continued to spread. The launch of generative AI applications in November 2022 has further galvanized attention to potential concerns about accuracy, bias, explainability, and governance of AI/ML applications. In this session, we explored recent developments relating to the use of machine learning and new data sources in credit underwriting as well as other financial services applications.