MAS Pathfinder to help financial firms adopt AI responsibly

By Vriti Gothi

The Monetary Authority of Singapore (MAS) has launched the Pathfinder programme to foster responsible, widespread adoption of artificial intelligence (AI) across Singapore’s financial sector.

Pathfinder is the first in a series of four targeted initiatives designed to position Singapore as a global leader in innovative, safe, and people-centric AI deployment in financial services.

Aimed at financial institutions (FIs) that are in the early stages of their AI adoption journey, Pathfinder provides participating organisations with a collaborative platform to exchange practical AI use cases, share implementation experiences, and leverage lessons learned from industry peers. Participants also gain access to curated training programmes tailored to specific AI solutions, ensuring that upskilling remains closely aligned with technological deployment. To date, 20 financial institutions spanning banking, insurance, capital markets, and payments have joined the programme, reflecting strong industry commitment to responsible AI innovation.

Complementing Pathfinder, MAS is rolling out three further initiatives to anchor Singapore’s position as a global AI hub. The second initiative focuses on building deep AI capabilities within the country. Over 30 financial institutions have already established dedicated AI teams locally, several of which operate as global AI competency centres. These teams are actively developing cutting-edge AI applications in Singapore, before scaling them to international markets, reinforcing the nation’s status as a nexus for financial and technological advancement.

Ensuring robust governance frameworks underpin this digital transformation, MAS is also developing comprehensive supervisory guidelines to help financial institutions manage emerging AI risks. This third initiative addresses critical areas such as model risk, data integrity, third-party dependencies, explainability, and rigorous testing standards. In parallel, an AI Governance Handbook is being drafted in collaboration with the MindForge consortium, with both resources slated for industry consultation later this year.

Recognising that people lie at the heart of any successful transformation, MAS’s fourth initiative focuses on future-proofing the financial workforce for an AI-driven economy. In partnership with the Institute of Banking and Finance Singapore, MAS is collaborating with nine financial institutions to pilot the use of generative AI to enhance eight existing job roles. Insights from these pilots will shape broader workforce transformation strategies and inform the sector’s evolving training needs.

Chia Der Jiun, Managing Director of MAS, said, “Through these four initiatives, we will support financial institutions and the workforce in the AI adoption journey so that AI solutions are developed and deployed safely and responsibly, and the workforce is provided with the skills to perform job roles transformed by AI.”

MAS’s multi-pronged approach underscores its commitment to building a progressive, resilient financial ecosystem underpinned by innovation, robust governance, and workforce readiness—ensuring Singapore’s financial sector remains globally competitive in the AI era.