数字化对金融市场和监管的影响（英文版）.pdf

BaFin Perspectives Issue 1 |2019Digitalisation Impact on financial markets, supervision and regulation Part II4 | BaFin PerspectivesContents Foreword 8 I. We have to seize the opportunities AI presents, but also face up to the risks it poses 10 Government, society, business, administration and academia have to seize the opportunities AI presents, but also face up to the risks it poses. It is important that its application is in the public interest and is rooted in fundamental democratic principles. Interview with Dr Jrg Kukies 11 II. Big data meets artificial intelligence results of the consultation on BaFins report and interview with Felix Hufeld 14 BaFin received numerous responses regarding its report “Big data meets artificial intelligence Challenges and implications for the supervision and regulation of financial services”. Industry associations, individual institutions, national and international authorities and representatives from academia contributed to the consultation. This article provides an overview of the responses and includes an interview with BaFin President Felix Hufeld, offering an initial analysis of the results. Jrn Bartels and Dr Thomas Deckers 1 Introduction 15 2 Financial stability and market supervision 17 3 Supervision of institutions 23 4 Collective consumer protection 31 5 Interview with Felix Hufeld 38 III. When banks outsource IT services 42 Outsourcing activities and processes allows banks to focus on their core competencies and to improve their services. However, outsourcing can only work if institutions can ensure that risks are kept under control. In the age of digitalisation, banks and supervisors are facing new challenges. Raimund Rseler and Ira SteinbrecherBaFin Perspectives | 5 1 Introduction 43 2 Standardisation of IT services 44 3 Outsourcing to the cloud 44 4 Risks of outsourcing 45 5 Requirements for outsourcing to cloud service providers 46 6 Guidance on outsourcing to cloud service providers 47 7 Discussions on the power to give instructions 47 8 To what extent can audit rights apply? 48 9 Limits to outsourcing 49 10 Outlook 50 IV. The community of policy holders in an era of Big Data and Artificial Intelligence 52 Rate setting and pricing in the insurance business are based on extensive historical data resources and forecast values. The increasing availability of Big Data (BD) and the rapid, innovative development of Artificial Intelligence (AI) are also changing the opportunities for developing individual rates. This article examines their impact on the balancing of risks in the community of policyholders. Prof. Dr Fred Wagner and Kristina Zentner, M.Sc. 1 Introduction 53 2 Definition of insurance 54 3 How insurance works: the actuarial principle of equivalence 57 4 The digital revolution 59 5 How Big Data and Artificial Intelligence affect calculations and rate setting 63 6 Impact on the community of policyholders 64 7 Assessment 66 8 Summary 676 | BaFin Perspectives V. The status of digitalisation at savings banks 68 This article outlines the positioning of the Savings Bank Finance Group regarding key aspects of digital trans for mation. It explains the various dimensions in which digitalisation impacts the savings banks and reveals how the institutions specifically shape the associated challenges and opportunities. Dr Joachim Schmalzl and Frank Weigand 1 The importance of digitalisation 69 2 Savings banks and digitalisation 71 3 The Savings Bank Finance Groups digital agenda An organisational roadmap 73 4 Trust in the digital world cybersecurity as a competitive factor 82 5 New business models for the Savings Bank Finance Group 84 6 Outlook 87 iStock/from2015BaFin Perspectives | 7 VI. En route to the world of digital insurance A report from the engine room of change 88 Insurers business is set to experience fundamental change. Dr Jrg von Frstenwerth, Chair of the Executive Committee of the German Insurance Association (GDV), analyses the seven possible megatrends and their potential as agents of change. Dr Jrg Freiherr Frank von Frstenwerth 1 Introduction 89 2 The battle for customer contact 91 3 New technologies: Artificial Intelligence, cloud and blockchain 93 4 Creative destruction: new business models and products 95 5 The process revolution 100 6 New competitors, greater diversity of providers 103 7 Competition for talent 106 8 Agile supervisors 108 9 Summary 109 Imprint 110ForewordBaFin Perspectives | 9 BaFin is devoting another issue of BaFinPerspectives to the topic of digita lisation and with good reason. The advancement of digitalisation is bringing about change across the board, and the financial market is no different. This, however, is a market that has always been heavily regulated because it relies, more so than other markets, on people being able to have confidence in its functioning, stability and integrity. Creating a solid basis for this confidence is BaFins role, which is why, in August 2018, it formulated its digitalisation strategy, setting out three basic questions: How should the market changes that digitalisation brings be handled in super visory practice and regulation? How can BaFin ensure that innovative technologies and IT systems and the data that supervised undertakings use are secure? How does BaFin itself need to adapt and evolve to meet the demands of ongoing digitalisation both internally and at its points of interaction with the market? BaFin needs to continually reassess its digitalisation strategy in order to keep pace with the changing situation. To this end, it keeps in active contact with the financial industry, academia, politics and other authorities a good example of this being the consultation for its report “Big data meets artificial intelligence”. In this issue, Jrn Bartels and Dr Thomas Deckers, both from BaFin, provide an overview of the responses to this consultation, and I give my initial analysis. In an interview, Dr Jrg Kukies, State Secretary at the Federal Ministry of Finance, explains the German federal governments planned framework for artificial intelligence. My colleague on the Executive Board, Raimund Rseler, and Ira Steinbrecher, also from BaFin, address the topic of banks outsourcing IT services. Professor Fred Wagner, who is a member of our administrative council, and Kristina Zentner, both of Leipzig University, have written about the community of policyholders in this era of Big Data and Artificial Intelligence. Dr Jrg Baron Frank von Frstenwerth of the German Insurance Association (Gesamtverband der Deutschen Versicherungswirtschaft e.V.), and Dr Joachim Schmalzl and Frank Weigand of the German Savings Banks Association (Sparkassen- und Giroverband) report on how the insurance industry and savings banks are dealing with the challenges posed by digitalisation. We hope you enjoy reading it. Felix Hufeld President of BaFin BaFin/Bernd Roselieb10 | BaFin Perspectives I Government, society, business, administration and academia have to seize the opportunities AI presents, but also face up to the risks it poses. It is important that its application is in the public interest and is rooted in fundamental democratic principles. BaFin Perspectives | 11 We have to seize the opportunities AI presents, but also face up to the risks it poses State Secretary, the Federal Government adopted the national AI strategy at the Digital Cabinet meeting on 15 November 2018. What is it about? This strategy marks the first time that the Federal Government has established an endtoend political framework for developing and applying Artificial Intelligence (AI) in Germany. It will pursue three main objectives. First, it is designed to make Germany and Europe a leading location for developing and applying AI technologies including to secure Germanys future competitive position. Second, it is designed to ensure the responsible development and deployment of AI in the public interest, and third, it is designed to embed AI ethically, legally, culturally and institutionally in society through a broad social dialogue and by actively shaping the political framework. The government is earmarking a great deal of money to achieve these objectives, with planned investments totalling three billion euros. The strategy also includes essential aspects for the financial industry and thus incorporates recommendations by the Fintech Council at the Federal Ministry of Finance. AI and Big Data enable innovations that are transforming the financial market. All this requires technical and professional expertise, and supervisors, too, must respond accordingly. BaFins study on Big Data and AI 1is an important first step in this direction. 1 BaFin, Big data meets artificial intelligence Challenges and implications for the supervision and regulation of financial services, bafin.de/dok/10985478. BaFin prepared the report in cooperation with PD Berater der ffentlichen Hand GmbH, Boston Consulting Group GmbH and the FraunhoferInstitute for Intelligent Analysis and Information Systems. Interview with Dr Jrg Kukies State Secretary at the Federal Ministry of Finance (BMF) BMF12 | BaFin Perspectives Where do you see the greatest opportunities and potential risks in using Big Data and AI in the financial market? The challenge to government, society, business, administration and academia is to seize the opportunities AI presents, but also to face up to the risks it poses. With its AI strategy, the Federal Government has established a basis for creating the conditions for leveraging the potential AI has to offer. BDAI must be developed and deployed to ensure humancentric application, in the public interest, for the economy and society, rooted in fundamental democratic principles. The interplay between AI and Big Data is leading to autonomous systems that are currently fuelling the rapid pace of digitalisation in all sectors of the economy. In the near future, these developments could also lead to changes in our financial system. We can already observe how BDAI is being used in the capital markets. And BDAI is also increasingly being recognised as an opportunity by banks and insurers. BDAI applications could, for example, be used in institutions risk assessment models or to facilitate claims processing in insurance undertakings. It is important when deploying BDAI technologies to ensure that financial stability and integrity are not compromised. Another factor is that consumers must not be left behind, meaning that they must not lose sovereignty over their personal data in a world of BDAI. Do you think it is possible that the increased use of Big Data and AI will lead to new types of systemic risk? No systemic risks can be identified at the present time because the use of Big Data and AI in the financial industry is still too low. But this can change quickly. That is why it is important for supervisors to keep an eye on possible risks to financial stability so that they can address them quickly if necessary. The application of Big Data and AI also frequently raises data protection issues. How do you think financial supervision should approach this? When companies analyse huge volumes of data in a self learning process, they must ensure that their customers stay in control of their data. The GDPR 2 , which came into force last year, established important standards for this across Europe, i.e. customers must consent to their data being processed for pricing purposes. At the same time, customers must be sensitised to an even greater extent to the fact that they generally pay for faster and better service with their data. But the companies, too, have to ensure that customer data is handled responsibly. The Federal Government has therefore set itself the goal in its AI strategy of convening a round table with data protection supervisors and industry associations that will devise joint guidelines for developing and applying AI systems that comply with data protection rules, and to prepare examples of best practice applications. Compliance with data protection rules is a matter for the responsible authorities of the Lnder and the Federal Commissioner for Data Protection. If the relevant requirements are met, BaFin may also intervene as part of its supervision of violations of consumer protection law. In particularly extreme cases, the suitability of management board members would also have to be called into question. In the first edition of BaFinPerspectives, BaFin President Felix Hufeld described the problem of unintentional discrimination by Big Data and AI. How can this problem be solved? Algorithms are not underpinned by a certain world view; they draw their conclusions from the data records. However, depending on how these records are selected or what the analysis will be used for, this can result in discrimination. The Fintech Council drew attention to this problem in its recommendations for action at the end of 2017. Part of a responsible approach to AI that bears the public interest in mind is also for companies using AI to ensure that discrimination is prevented if necessary by using human control mechanisms. For the financial industry, this means that using AI technology does not absolve the management board from its overall responsibility for ensuring a proper business organisation. 2 General Data Protection Regulation.BaFin Perspectives | 13 Big Data and AI make it possible to link heterogeneous data. This may also allow companies to explore customers maximum willingness to pay and, given corresponding market power, to exploit it. What is your view on this? Pricing is linked to numerous issues that go far beyond supervisory law. As in other areas, the bounds of what is acceptable are reached when the company exploits its market power at the expense of consumers. If pricing is based on personal data, the protection afforded by the GDPR also applies here. The Federal Government has set itself ambitious goals with its AI strategy. What do you expect from BaFin? The Federal Government wants to take the lead in the further deployment of AI in public administration and hence contribute to improving the efficiency, quality and reliability of administrative services. BaFin can also play an important role here. It laid the foundations for this with its BDAI study, and it is now time to build on them. BDAI applications can add value especially in supervisory areas where BaFin has structured data in sufficient quality and quantity. One area that sprints to mind, for example, is the reporting system for securities supervision. BaFin should be ambitious and examine whether the analysis of large structured data volumes can be managed more often by AI in the future. BaFin