Artificial Intelligence in Financial Services: Emphasizing Innovation, Mitigating Risk

At MX, we're committed to driving innovation in financial services through data and technology while ensuring that people are empowered and protected. As artificial intelligence (AI) continues to rapidly transform the financial landscape, we believe it's crucial to have thoughtful policies in place that promote responsible AI development and use.

That's why we recently responded to the Office of Science and Technology Policy's (OSTP) Request for Information (RFI) on the development of an AI Action Plan. This RFI seeks input from various stakeholders on how to shape the future of AI in the United States. 

With 14 years of experience in financial data and working with financial institutions, we have a unique point of view of consumer-centric financial services. Below are some of the key points we made in our submission. 

Data Access is Key to AI Effectiveness

AI models in financial services rely on high-quality, comprehensive data to be effective. But, many AI models — particularly in financial services — can suffer performance challenges due to incomplete datasets. 

For instance, the average consumer has at least five or more financial accounts with various banks, credit unions, and other financial providers. This fragmented financial experience can leave consumers — and the financial providers who serve them — with blindspots that can negatively impact efforts to improve consumer financial well-being. Without connecting those various accounts and sources of financial data together, organizations can’t effectively deliver the products and services that best meet consumer needs. 

Comprehensive access to permissioned consumer financial data (such as checking accounts, credit, and investment history) can help AI models to better understand financial behavior, leading to more accurate and consumer-centric guidance and outcomes.

We advocate for modernizing cross agency financial data regulations and oversight to enable secure and consumer-permissioned access to financial data, which will improve the accuracy and fairness of AI-driven financial services. 

Consumer-Centric AI Development

AI should be designed to prioritize consumer well-being and empowerment. We believe that AI has the potential to revolutionize financial health by helping individuals make informed decisions and achieve their financial goals.

For example, we envision that AI models in financial services will evolve from today’s basic insight tools into proactive financial optimization services. A new emerging concept is “self-driving finance”, where AI agents automatically manage routine financial tasks and even make optimized decisions on behalf of consumers with their consent and guidance. But, these concepts only work if the data supports them. If AI agents are to take action on behalf of consumers or businesses, it is essential that the agent has a 360-degree view of the person’s or business’s financial situation to ensure the actions it takes are beneficial. 

Conversely, if a model has been trained on incomplete, or only publicly available data, the outcomes will be less optimal — even if a person has shared their 360-degree view of their finances.

Policy Recommendations

We recommended several policy actions to the OSTP, including:

• Modernizing financial data regulations to ensure secure, permissioned data access for AI development.
• Improving coordination between regulatory agencies to ensure consistent standards for data sharing, model governance, and consumer protection.
• Supporting the development of AI risk assessment and mitigation frameworks to ensure fairness, transparency, and accountability in AI models.

The Future of AI in Financial Services

We believe that AI has the potential to transform financial services for the better, making them more personalized, accessible, and efficient. By advocating for responsible AI policies, we can help ensure that AI is used to empower consumers and drive positive change in the financial industry.

We're excited to continue engaging with the OSTP and other stakeholders on this important issue. We believe that by working together, we can shape a future where AI is used to create a more inclusive and prosperous financial system for all.