The IA Act: an opportunity for fintechs or an obstacle to their innovation?
- Iter Advisors
Contents
Artificial intelligence (AI) is rapidly transforming the financial sector, and the passage of theAI Act on May 21, 2024 represents a pivotal moment for fintechs in Europe. While some see this regulation as a constraint, it could also open up new prospects for companies ready to seize the opportunity for responsible transformation.
Building trust through compliance
L'IA Act aims to regulate the use ofartificial intelligence at Europeand it could well redefine the way in which fintechs operate. At the heart of this legislation lies the need to build a relationship of trust with consumersensuring the transparency, l'fairness and the personal data protection. For the fintechsthis means that alignment with these new standards is not just a legal obligationbut an opportunity to distinguish oneself market increasingly competitive. The stakes are clear fintechs must demonstrate that their technologies are not only effective, but also comply with the most stringent ethical standards high. Those who succeed in demonstrating a strong commitment to these principles will have a a step aheadby gaining the trust of a large customers increasingly sensitive to these issues.Fintechs: pioneers in a new environment
Visit fintechsoften seen as the driving force behind theinnovation in the financial sectorare particularly well positioned to navigate this new environment regulatory. Their ability to adapt quickly and their a culture of innovation give them a clear advantage in not only complying with these new regulationsbut also to take advantage of them. L'IA Act imposes strict requirements on AI systems judged in high risksuch as those used for thesolvency assessmentthe fraud detection or the algorithmic trading. For the fintechsthis means they need to strengthen their processby ensuring that their systems are transparencies, understandable and free of all bias. For example, as part of thecustomer onboardingit becomes imperative to guarantee that the AI processes used do not discriminate and are just for all users.Innovating under constraints: a lever for differentiation
If the compliance may seem like a hindrance at first glance, it can actually stimulate theinnovation. By complying with the new requirements fintechs have the opportunity to rethink their products and services to make them not only compliant, but also more attractive to customers. consumers. Respecting the new data protection standardsfor example, could lead to solutions...Discover our latest content
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