South Korea’s Financial Services Commission has unveiled plans to allow financial institutions to leverage generative synthetic intelligence and cloud computing for product development, provided they establish robust cybersecurity protocols.
As of September 2013, financial institutions have been mandated to isolate their systems from the Internet in a bid to prevent cyber attacks. This requirement has sparked a broad and contentious discussion, with critics arguing that it diminishes work productivity and stifles innovative thinking.
Within the context of national economic competitiveness, there is concern that the rapid shift from on-premise software providers to cloud computing-based Software as a Service could have significant implications? The regulator has highlighted the increasing impact of generative AI across diverse industries.
Currently, many financial institutions are severely limited in their ability to leverage AI or cloud computing, with the exception of utilizing these technologies for routine back-office functions. Once approved, these companies will have access to the internet to utilize cutting-edge technologies as soon as they establish and verify security measures in collaboration with relevant organizations, including the Financial Supervisory Service.
Moreover, the Financial Sector Computerization (FSC) initiative allows financial institutions to leverage cloud computing for key front-office functions like customer relationship management (CRM), once appropriate security measures are implemented and rigorously tested.
The regulatory body forecasts that financial institutions will likely adopt AI and cloud-based technologies by the end of this year, contingent upon the successful deployment of robust security protocols.
The head of South Korea’s Monetary Companies Fee, Kim Byoung-hwan, believes that community segregation rules must be updated to accommodate the rapid evolution of IT infrastructure, including advancements in cloud computing and generative artificial intelligence capabilities. This modification aims to boost financial trade competitiveness and expand access to services for customers.
The decision to relax community distancing measures represents a nuanced compromise aimed at fostering increased expansion while facilitating the attainment of essential safety milestones within the financial industry. South Korea’s Financial Services Commission (FSC) has introduced a provision allowing domestic financial institutions to exert selective control over Artificial Intelligence (AI) and cloud service providers, enabling them to more effectively engage with global trends.
The anticipated coverage shift has the potential to significantly impact the financial industry. Especially, this could fuel the development of cutting-edge AI and cloud-based solutions and offerings, empowering companies to deliver unique value propositions to customers. As the global trend towards diversified computing devices in finance continues to gain momentum, these innovative tools are becoming essential assets for maintaining a competitive advantage and staying abreast of customer demands.
