Artificial intelligence is creating value across KYC, sanctions screening, transaction monitoring, fraud detection and credit risk, but Deutsche Bank says speed of adoption must not come at the expense of testing and human oversight. Tsvetanka Nankova of Deutsche Bank describes this approach as “responsible velocity”, where AI is used to accelerate risk processes while keeping a human in the loop for accountability and judgement.
In KYC, AI can structure customer information and support more consistent risk assessment, while transaction monitoring and fraud detection can use AI to review alerts as payment systems become increasingly real-time. In credit risk, AI can support faster credit decisions within the bank’s defined risk appetite. However, Nankova highlights a significant concern: two users running effectively the same prompt can receive different answers. For financial institutions, such variability creates a model-quality and reproducibility risk.
Deutsche Bank’s approach therefore emphasises extensive testing and quality assurance for each specific use case, the ability to explain how an AI system reached a particular conclusion, and compliance with data, privacy and ethical standards. The message is particularly relevant for BFSI institutions adopting generative and agentic AI: automation can accelerate decisions, but responsibility remains with the institution. Human oversight therefore needs to remain proportionate to the potential impact of the AI-assisted decision.
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