ABSTRACT
The chapter discusses the regulatory objectives and methods of regulation in these three areas by looking at three close parallels. The first is the use of AI in the trading platforms for capital optimisation, such as an increase in efficiency, accuracy and the speed of capital optimisation through the foundations of computing capabilities, big data and mathematical concepts built by AI and machine learning (ML). The second is the use of robo-advisers to provide investment services, such as identifying wider sources of available funds for Fintech, lending to small and medium-sized enterprises and clients through AI and ML’s advanced credit scoring. And the third is the use of AI in RegTech services to streamline compliance costs, such as the costs involved in the Know Your Consumer processes (KYC). In this way, the author examines how AI-facilitated access to finance can align with current regulatory objectives and methods of regulation. Whether the provision of this access will conflict with other values, such as privacy, data protection and ethics will also be examined.
Keywords: AI, access to finance, investor protection, KYC, GDPR, privacy rights
