WEBINAR: AI and Shifting Mindset of Central Banking & Supervision

Event Code :WB392020
Venue :Online Webinar
Host Name :Online Webinar
Coordinator :
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Date From :08 Jul 2020
Date To :08 Jul 2020

Descriptions


Information and internet technology have fostered new web-based services that affect every facet of today’s economic and financial activity. These services create enormous quantities of “big data” – defined as “the massive volume of data that is generated by the increasing use of digital tools and information systems” (Financial Stability Board, 2017). Such data are produced in real time, in differing formats, and by a wide range of institutions and individuals. For their part, central banks face a surge in “financial big data sets”, reflecting the combination of new, rapidly developing electronic footprints as well as large and growing financial, administrative, and commercial records.
 

This phenomenon has the potential to strengthen analysis for decision-making, by providing more complete, immediate, and granular information as a complement to “traditional” macroeconomic indicators. To this end, a number of techniques are being developed, often referred to as “big data analytics” and “artificial intelligence” (AI).

Artificial intelligence – or AI for short – is technology that enables a computer to think or act in a more human way. Big tech companies brought AI to our everyday lives through digital assistants, smartphones, online ads, and search engines with features like automatic suggestions and targeted results.
 

The recent development and subsequent boom of specialized machine learning algorithms called deep learning have allowed computers to see and discern images and videos, understand and generate human-language texts and speeches, drive cars and control robots, and perform a plethora of other tasks nearly as well as humans do. With its potential of automating manual human labours, machine learning will certainly affect employment and the general economy in the years to come.
 

There are many areas where central banks are interested in dealing with big data issues and artificial intelligence. For example:

  • Collection and provision of statistics;
  • Analysis of monetary and financial market developments in line with central banks’ mandates for price stability and financial stability;
  • Supervision of the banking system and the broader financial system; and
  • Oversight of, and in some cases operation of, financial market infrastructures including payment systems generating huge quantities of data daily for potential analysis.

 

The SEACEN Special Webinar Series on Artificial Intelligence in Central Banking and Supervision is designed to explore various topics and issues relating to AI that is of interest to SEACEN stakeholders. The session Artificial Intelligence and Shifting Mindset of Central Banking and Supervision will be delivered by David R. Hardoon, PhD, the Senior Advisor for Data and Artificial Intelligence at UnionBank Philippines.