MAS Launches Pathfinder Program to Accelerate AI Adoption in Financial Institutions
The Monetary Authority of Singapore (MAS) has introduced the Pathfinder program, known as PathFin.ai, to assist financial institutions (FIs) in adopting artificial intelligence (AI) technologies. The initiative encourages collaboration among FIs to share knowledge and successful AI use-cases, creating a curated library of industry-validated solutions and best practices. This resource aims to streamline the process of selecting and implementing AI applications, reducing time and effort for institutions.
Currently, 20 FIs spanning banking, insurance, capital markets, and payments have joined the Pathfinder program. The program also partners with established training providers to deliver skills development aligned with the AI solutions adopted by these institutions, helping to bridge capability gaps.
Growth of AI Adoption in Financial Services
MAS highlights that AI is increasingly integrated across financial services worldwide. Use-cases range from automating back-office processes and software development to enhancing customer relationship management, advisory services, risk management, and transaction screening. AI is becoming a key differentiator for FIs and financial hubs, making it critical for Singapore’s financial institutions and workforce to stay competitive by effectively adopting AI.
Building Stronger AI Capabilities
Over 30 financial institutions in Singapore have established dedicated AI functions, with some serving as Global AI Competency Centers. These centers focus on developing use-cases that deliver value and pilot AI solutions locally before scaling them internationally. MAS encourages more FIs to develop AI expertise in Singapore and join this growing network of AI practitioners.
Emphasizing Governance and Risk Management
As AI adoption grows, MAS stresses the importance of robust governance and risk management to ensure responsible AI use. Supervisory guidance is being developed to address key risks such as model accuracy, data integrity, technology reliability, and third-party dependencies. Poor risk management could lead to incorrect decisions or harmful advice affecting customers and investors.
Last year’s thematic review of AI use in major banks revealed varied maturity levels in managing AI-related risks. MAS shared findings and good practices in an information paper and is now preparing supervisory guidelines to clarify expectations around AI governance, controls, and risk management.
AI Governance Handbook
The upcoming guidelines will cover critical areas like evaluation, testing, and explainability of AI models. The thematic review showed inconsistent practices in risk assessment during AI development. To complement the guidelines, MAS is collaborating with the MindForge consortium to produce an AI governance handbook. This handbook will serve as a practical guide for FIs adopting the new supervisory standards.
Upskilling the Financial Workforce
MAS plans to release consultations on the supervisory guidelines and the MindForge handbook by the end of the year. Concurrently, MAS and the Institute of Banking and Finance Singapore (IBF) are intensifying efforts to upskill financial professionals, especially in generative AI (GenAI) capabilities.
IBF is running pilot projects with nine FIs to explore how AI can augment and transform eight specific job roles within the sector. Insights from these pilots will inform workforce transformation strategies, ensuring the sector adapts effectively to AI-driven changes.
These initiatives support financial institutions and their employees in adopting AI safely and responsibly, while equipping the workforce with the skills needed for evolving job roles influenced by AI.
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