Risks (and Rewards) of Artificial Intelligence in Banking

In this webinar we’ll discuss these concerns and risks, so that you can properly monitor and establish controls for these technologies so you can best manage regulatory expectations as you succeed.

Recorded Monday,
July 31st, 2023
Presented by Carl Pry
2h total length
2.5 CRCM Credits
$279.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Commercial/Business Lending
  • Compliance
  • Deposit Accounts
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  • Board Member
  • Branch Manager
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  • Consumer Lender/Retail Banker
  • Deposit Operations Manager/Specialist
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  • Loan Operations Manager/Specialist
  • Marketing Officer/Business Development
  • Risk Manager
  • Senior Management
  • Small Business Lender
  • Trainer

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There has been quite a lot in the news lately regarding the use of artificial intelligence, or AI, in the banking industry. But there is more to it than just AI – financial institutions are increasingly using algorithms and so-called “big data” in their operations. The benefits are obvious – more effective marketing, more efficient underwriting of credit, and just an overall sense of better knowing the customer.

But there are two sides to every coin; there are significant risks to using AI and nontraditional data when dealing with customers and prospects. The regulatory agencies (as well as Congress and the Administration) are keenly focused on these risks, and are looking very carefully at what the industry is doing. We have fintechs to thank for many of these advancements, but they are not regulated the same way as traditional banks, thrifts, and credit unions, so usage of these exciting tools and strategies must monitored carefully.

What You'll Learn

  • “Algorithmic discrimination” – what is this, and how can we monitor for it?
  • Digital redlining – offering your products in the digital world
  • The White House’s “Blueprint for an AI Bill of Rights”
  • The Facebook settlement – case study in digital advertising
  • Regulatory agency and FTC guidance on the issue – many to-dos and recommendations
  • Machine learning and related risks
  • AI Framework from the National Institute of Standards and Technology
  • FHA: algorithm-based tenant screening
  • Recent Automated Valuation Model (AVM) proposal – bias in the evaluation process
  • Joint statement on AI-based discrimination from CFPB, DOJ, FTC, and EEOC
  • Fintech-bank partnerships

Who Should Attend

This interactive session is appropriate for anyone in the institution involved in the marketing, management, and servicing of retail products. As these technologies are pervasive throughout the product lifecycle, most anyone, Board members included, will benefit from this information.

Carl Pry

Instructor Bio

Carl Pry is a Certified Regulatory Compliance Manager (CRCM) and Certified Risk Professional (CRP) who is a Senior Advisor for Asurity Advisors in Washington, DC. Through his more than 30-year working career, as well as through his experience as a banking attorney and officer, he has provided a variety of regulatory compliance and financial performance services to financial institutions and other clients throughout the country. He has written extensively regarding consumer and commercial compliance, tax, audit, and financial institution legal issues, and is a frequent contributor to and currently serves as the Chair of the Editorial Advisory Board for the ABA Bank Compliance magazine. He has spoken at scores of banking, compliance, and state bar associations, and has conducted training sessions for financial institutions across the country.

Continuing Education Credit Information

Risks (and Rewards) of Artificial Intelligence in Banking has been approved for 2.5 CRCM credits. This statement is not an endorsement of this program or its sponsor. Credits are redeemable for both Live and OnDemand viewing. For questions on certificates, please email support@oncourselearning.com. Certification holders must report these credits at https://aba.csod.com.