ABSTRACT
Financial firms have become hardwired into digital platforms, which raises concerns about the potential risks of increased competition and disintermediation: the increase in data breaches and cyber-crimes brings a degree of uncertainty in digital banking. Market users rely on Artificial Intelligence (AI) to assess business products and formulate investment decisions, but they have limited understanding of the negative effects of undesired outcomes on their choices. Digital banking holds the potential to increase the speed of client on-boarding and contain risk as a distributed shared ledger acts as an immutable assured audit trail of all know-your-customer due diligence processes and automation of account opening. By employing digital solutions, an intermediary can rapidly verify the identity of its clients and assess the potential risks of illegal intentions for the business relationship. In finding potential avenues for the accountability of autonomous artificial systems, the use of sandboxes as a policy tool for regulating innovation would facilitate the identification of the liability regime.
