Shinhan Financial Group Begins Establishing Group 'AI Governance'

Shinhan Financial Group announced on the 4th that it has begun establishing the group's ‘AI Governance’ to strengthen the internal control system in the AI field in response to the expanding scope of AI utilization within the group.

AI Governance refers to a management system designed to identify ethical, legal, and social potential risk factors that may arise when financial companies use AI for customers and employees, preventing these issues from escalating into incidents or accidents.

Earlier, the Financial Services Commission launched the Financial Sector AI Council in March to discuss the establishment of ethical guidelines for generative AI, and on the 13th of last month, announced the ‘Roadmap for Improving Network Separation in the Financial Sector,’ accelerating related discussions.

In response to this, Shinhan Financial has promptly started building the group’s AI Governance based on regulatory guidelines, including ▲ AI ethical principles ▲ definition of roles by organization ▲ preparation of related internal regulations and work manuals ▲ establishment of risk management measures.

The holding company will first define ethical principles and various standards that all group companies must comply with, and each group company will prepare internal regulations and manuals containing risk identification and control measures at all stages such as AI technology development and operation, linking these together to build the system.

The holding company aims to establish group standards by the end of October, with the bank, card, and securities divisions completing theirs by the end of this year, and the Life division by the first quarter of next year. The established group AI Governance will be gradually strengthened in accordance with the expanding scope of AI utilization.

A Shinhan Financial Group official stated, “As AI utilization becomes more active in the financial industry recently, securing the reliability and stability of generative AI is essential,” adding, “Shinhan Financial will strive to provide AI services that customers can trust through the proactive establishment of ‘Group AI Governance.’”

This content was produced with the assistance of AI translation services.