McWilliams: FDIC Guidance Forthcoming on AI, Machine Learning

The FDIC is in the process of developing guidance for financial institutions on artificial intelligence and machine learning, FDIC Chairman Jelena McWilliams said during a speech in Washington, D.C., today. McWilliams said that the guidance will address the “everyday” use of AI and machine learning, as well as how the FDIC will look at it from a supervisory perspective.

McWilliams also discussed the agency’s plans to review its brokered deposit regulations, noting that the agency is aiming to have a proposal out for comment before year-end. She acknowledged that technology has fundamentally changed the nature of deposits, as consumer preferences increasingly shift to digital channels. “The question is: Do people know when they’re insured? With brokered deposits, that’s not always clear,”  McWilliams said in comments to press after the event.

Speaking about innovation more broadly, McWilliams noted that as regulators, “we need to be committed to evolving our regulatory framework as the technology evolves.” She added that fintech can play a vital role in bringing more unbanked individuals into the financial system and fostering greater economic equality. “Technology is something where, if we use it in the right way, can get us there faster. As good regulators, we need to foster that.”