De-risking Generative AI for Banking and Finance

Cover Story

De-risking Generative AI for Banking and Finance

Artificial Intelligence (AI) technologies have penetrated all industries and are now being used for myriad applications. In financial services, many organisations are looking to build AI-driven platforms to establish a competitive advantage, uplift productivity and enhance customer engagement. Today, AI is seen as one of the most disruptive technologies impacting businesses. But there are gaps to fill.

Thought Leaders

Strategies for Success: Trust, Integrity and Close Relationships

A widely respected voice in Hong Kong’s banking and finance sector and beyond, having spent his entire career with Shanghai Commercial Bank (Shacom Bank), from trainee to becoming Chief Executive, with his retirement recently announced, as well as reflecting on his long and distinguished career, David KWOK offers insights on the importance of customer relationships, how banks need to adapt their risk perspectives to an uncertain environment and different ways to elevate talent engagement.

Special Article

A Proposal for a “Fairer” International Monetary Architecture

Intended to function as an “indexed unit of account” that represents real global purchasing power, the World Currency Unit (WCU) could support efficient, transparent capital markets as savers and borrowers would have an hedge against two sources of uncertainty; inflation and exchange loss risks. The WCU, or alternatively and perhaps more accurately, the “Global Purchasing Power Unit” (GPU), is an indexed unit of account that stands for a unit of real global purchasing power.

Fintech

Advancing Fraud Prevention: Strategic Enhancements in Hong Kong’s Financial Sector

In spite of heightened awareness, Hong Kong, like other jurisdictions and countries, continues to grapple with high incidences of sophisticated financial scams, including e-banking and online credit card fraud. In 2023, the Hong Kong Police handled 39,824 scams, accounting for 44.1% of all recorded crimes, with technology-related fraud cases increasing by 50% to 34,112. In the first four months of 2024, according to Hong Kong police figures, more than 10,000 cybercrime cases were recorded involving over HKD1.8 billion (USD230 million) in financial losses.

Change Horizons

Unified Ledger: Unveiling a New Era of Settlement Options

As new technologies continue to modify the way financial transactions are settled, atomic settlement in the form of instantaneous real time DvP (delivery versus payment) may be possible in future when the clearing and settlement platform is fully tokenised and programmable. With the product side tokenised, cash tokens could be issued in the form of central bank digital currency (CBDC), stable coins or tokenised deposits. It could also be possible the three options have a role to play in the clearing and settlement platforms of the new era.

GRC Corner

Revisions to Mainland China Company Laws Spells Good News for Hong Kong Banks

Substantial revisions to the Company Law of the People’s Republic of China, which aim to create a more sophisticated and modern business environment with Chinese characteristics, are also designed to provide a sound legal environment for foreign-invested companies with business interests in Mainland China.