UK banks getting access to NVIDIA's tech in new scheme
What's the story
The UK's finance watchdog, the Financial Conduct Authority (FCA), is set to launch a new initiative, the "supercharged sandbox."
This program will allow banks and other financial firms to experiment with NVIDIA's advanced artificial intelligence (AI) tools.
The move is aimed at accelerating innovation and boosting economic growth in the country.
The FCA said successful applicants will be able to safely explore cutting-edge AI under its supervision using NVIDIA's accelerated computing products.
Use cases
Potential use cases of the technology
The FCA hasn't specified what experiments could be conducted with NVIDIA's AI tools.
However, some firms have previously suggested that this technology could be used to detect and prevent authorized push payment fraud.
These are scams where victims are tricked into transferring money to criminals' bank accounts.
The tech may also help in identifying stock market manipulation activities.
Program launch
FCA's AI sandbox program open for applications
The FCA's AI sandbox program is now open for applications and will start operating in October.
The move comes nearly a year after Chancellor Jeremy Hunt asked the FCA to promote more risk-taking in the City to spur growth and competitiveness.
The government is urging UK watchdogs to do more to support the economy amid criticism that red tape has been a barrier to business and inward investment.
Risk mitigation
Focus on AI despite job loss fears
The FCA's focus on AI comes despite fears that the technology could lead to job losses across various sectors, including financial services. This is unless the government implements proper controls.
The move aligns with UK PM Keir Starmer's calls for a major rollout of AI, including "sector champions" that could boost Britain's role in developing and deploying this technology.
Tech partnership
NVIDIA's European head of financial technology
NVIDIA, a leading player in the AI market, will be collaborating with the FCA for this initiative.
The company's European head of financial technology, Jochen Papenbrock, said AI is fundamentally reshaping the financial sector by automating processes and improving decision-making.
He added that "the FCA's supercharged sandbox provides firms with a secure environment to explore AI innovations using NVIDIA's full-stack accelerated computing platform."