State Bank of India (SBI) Chairman C.S. Setty has highlighted the transformative potential of artificial intelligence (AI) in strengthening financial market infrastructure and enhancing efficiency across the banking ecosystem.
According to the report, AI can significantly improve core functions such as transaction processing, settlement systems, fraud detection, and risk monitoring. By enabling real-time analytics and automation, AI can help reduce operational inefficiencies and improve speed and accuracy in financial operations.
The Chairman emphasised that AI-driven systems can enhance transparency and resilience in market infrastructure, which is critical for maintaining stability in an increasingly digital financial environment. Advanced technologies can also support better regulatory compliance through improved data analysis and reporting capabilities.
The adoption of AI is expected to play a key role in modernising financial systems, especially as transaction volumes increase and market complexity grows. It can help institutions manage risks more effectively while supporting innovation and customer-centric services.
However, the report also underscores the importance of strong governance frameworks to address risks associated with AI, including data privacy concerns, algorithmic bias, and cybersecurity threats.
From a risk management perspective, integrating AI into financial market infrastructure requires careful oversight, continuous monitoring, and alignment with regulatory standards.
The development highlights the growing role of AI in shaping the future of financial systems, driving efficiency while necessitating robust risk controls.
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