Singapore banks race ahead with AI but governance lags, leaders warn

Singapore banks are pushing forward with artificial intelligence at a pace that may be outstripping their ability to govern it safely, banking leaders warned during a roundtable hosted by Fintech News Network and Alteryx. Rajay Rai, Chief Information and Operations Officer at Trust Bank, cautioned that the industry is "not ready" for how quickly AI is embedding itself into financial operations, from fraud detection to customer-facing tools.

The roundtable brought together leaders from Singapore's banking sector to debate AI readiness at a time when the Monetary Authority of Singapore is scrutinising how financial institutions deploy AI models. Banks across the city-state are racing to integrate AI into core operations — credit scoring, anti-money laundering checks, personalised banking — but governance frameworks and risk controls have not kept pace with the speed of deployment.

The central challenge, according to participants, is balancing speed with control. AI models can be deployed in weeks, but validating their decisions, auditing their outputs, and ensuring regulatory compliance takes significantly longer. With MAS requiring explainability and fairness in AI-driven credit decisions, banks face pressure to slow down and build robust governance structures — even as competitive dynamics push them to move faster.

Why it matters for Singapore: As a global financial hub, Singapore's approach to AI governance in banking will set benchmarks for the region. The roundtable discussion highlights a growing tension between MAS's innovation-friendly stance and the operational reality that most banks are still building their AI governance muscle. How Singapore resolves this — through industry standards, regulatory sandboxes, or closer public-private collaboration — will shape whether the city-state becomes a leader in responsible AI adoption or just another fast follower.