As movers and shakers from the European payments industry descend on Stockholm for EBAday, a new report from the Euro Banking Association (EBA) suggests that jointly developed AI systems hold great potential for tackling common security issues.
While the industry focuses on the use of artificial intelligence at the level of individual institutions, the report zooms in on the collective benefits that could be generated by jointly developed AI systems in the era of open banking.
Put together by the EBA's Open Banking working group, the report argues that collaboratively created systems for analysing data generated by open banking could unlock solutions for common security issues such as fraud prevention and cyber security.
For example, AI could detect security threats across institutions and jurisdictional boundaries, thus improving the overall efficiency and resilience of the financial system at large.
Vincent Brennan, chair, EBA Open Banking working group, says: "If you bring together the data sharing opportunities unlocked by open banking with the insights and decision-making capabilities enabled by AI-supported data analytics, you end up with a powerful combination that could revolutionise the financial sector.
"This could be a real game-changer for many of the collective challenges we are facing as an industry, from security issues to regulatory reporting. There are quite a few hurdles to overcome and joint standards to be agreed on, but since there is a lot to be gained, market players should seriously consider looking into these opportunities."
Open Banking and AI will both be high on the agenda at the fourteenth annual EBAday this week. Finextra will bring you all the news and views.