MUFG Bank, Ltd. is creating a workplace where humans and artificial intelligence (AI) collaborate, with each AI tailored for a specific role.
“Our CEO says we should make the workplace as friendly as possible for our AI colleagues,” said Osamu Abe, executive officer and chief of staff for Asia-Pacific at the Japanese lender, in an interview with Asian Banking & Finance.
Abe does not envision a single, all-powerful AI. “I want diversity—different personalities and different risk levels. I don’t want compliance and credit office AIs to behave like our sales and trading AIs,” he explained during a Microsoft Teams interview.
Humans will stay in control. “In decision-making, humans are always in the loop,” Abe stated. “Right now, we’re deploying AI with human intervention, essentially doing the groundwork that we would have done manually otherwise.”
He mentioned that banks require strict rules, especially regarding security and compliance. They are applying their traditional security methods to this project.
Abe noted that AI could save time by improving work quality and enhancing security. Routine tasks like emails, transcripts, PowerPoints, client proposals, and establishing new business contacts can all be completed more quickly with AI assistance.
AI also aids in regulatory tasks, including KYC checks and identity verification, ensuring accuracy for compliance. It connects MUFG’s global operations, linking clients in Asia, Europe, and the US.
These operations are managed through an India-based “global efficiency” center.
The next step, he added, is to automate the entire process. This will involve ensuring that AI is working properly at the decision-making level.
Abe emphasized the importance of carefully managing third-party data. “Regulators want to know how we use this data when working with outside parties,” he said, adding that banks should have the option to use innovative services.
Finding a regulatory balance between traditional governance and new rules while allowing financial institutions to benefit from new services will be crucial, Abe remarked. “Eventually, we will likely find common ground on what these governance norms should entail.”
MUFG also supports startups and partner banks in Asia, connecting them with clients and investors. Abe stated that the bank is investing in AI and fintech to prepare for market changes.
“We are looking into the future of finance, moving directly into fintech rather than traditional retail finance,” he said, adding that they aim to be ready when new services dominate the market.
The bank examines other markets for ideas. “Thailand, in some ways, is more advanced in offering retail mobile phone applications than Japan,” he noted. “We can learn from these different markets.”
India is another area of focus. MUFG has invested in consumer finance startups, including a 20% stake in DMI Finance, which serves those new to credit. “Half of their clients have never had credit cards or any credit history. Buying phones through our partner’s startup was their first step into accessing consumer credit,” Abe explained.
Other investments include the buy-now-pay-later platform Akulaku, Inc., HC Consumer Finance Philippines, Inc., and the lending company PT Adira Dinamika Multi Finance.
Source: https://asianbankingandfinance.net/banking-technology/exclusive/mufg-plans-role-based-ai-workplace
