Finance minister Pierre Gramegna, Claude Marx (CSSF) and Björn Ottersten (SnT) during the signing of the partnership agreement. Photo: Twitter/@SnT_uni_lu
Luxembourg’s financial watchdog, the CSSF, entered into a 3-year partnership with the University of Luxembourg’s centre for security, reliability and trust (SnT) on Thursday.
The partnership is a bid to leverage AI innovation for challenges faced in the financial sector. A first project has already been identified, namely the use of AI to garner document data and ensure its regulatory compliance after it has been submitted to the CSSF. “Through this project, we will be able to rapidly identify which passages need in-depth review, as well as which passages can be automatically approved,” Jean-Pierre Faber, CSSF executive committee member, said in a press statement. “This will enable us to process the data more quickly, while simultaneously improving the quality of our analysis.”
As the University further summarised, “researchers will develop advanced techniques using natural language processing and machine learning to ‘translate’ the contents of fund documents into something machines can read and review for compliance, completeness and consistency.”
The supervisory authority also sees the partnership as part of its CSSF4.0 strategy, which will pump investment into fintech and related tools, work process review and training for agents. But for the SnT, it also provides a concrete project beyond academia, according to director Björn Ottersten, who called this aspect “rewarding”.
The agreement, open for renewal, brings the total of fintech partnerships for the SnT up to 14, most of which are utilising AI to some extent.