UK and Singapore form alliance to guide AI in finance

The UK and Singapore are laying the groundwork for what might become a blueprint for international AI cooperation in finance.

For their tenth annual Financial Dialogue, representatives from the UK’s Financial Conduct Authority and Singapore’s Monetary Authority met in London earlier this week alongside fintech companies from both nations showing off their latest AI solutions.

Rather than vague promises of “future collaboration,” the partnership has immediately focused on practical applications. Among the areas explored include how AI can improve risk assessment, spot fraud more effectively, and deliver more personalised financial services without compromising regulatory standards.

The day after the official Financial Dialogue, the suits from government and the power players from industry sat down together at a business roundtable. While these events can sometimes be exercises in diplomatic small talk, the roundtable reportedly explored the real-world challenges of implementing AI in the heavily regulated environments of finance.

A focus on explainability in AI decision-making was top of the agenda, with financial institutions from both countries wrestling with how to satisfy regulators while still leveraging the “black box” capabilities of AI solutions.

Beyond the role of AI in finance, the talks covered broader fintech innovation. For example, the ongoing Project Guardian asset tokenisation initiative got a boost, with both countries agreeing to bring their respective Investment Associations to the table.

The UK also shared its early experiences with the ‘Global Layer One’ initiative; a project to “foster the development of open, interoperable, shared ledger infrastructures” with high regulatory compliance. The project is still in its infancy but has the potential to be transformative for cross-border finance.

While I’ve focused on the tech angle, it’s worth noting this partnership sits within a broader financial relationship that covers everything from sustainable finance to capital market development.

Of note, the UK shared its progress on the Transition Finance Council – part of its urgent push toward green finance – while Singapore updated on its Singapore-Asia Taxonomy adoption. Both sides discussed voluntary carbon markets and sustainability disclosures, reflecting how climate concerns have become inseparable from financial planning.

Unlike many international agreements that fade into bureaucratic oblivion, this partnership has clear next steps. Officials will meet again before the next full Dialogue (scheduled for Singapore in 2026) to advance specific initiatives in sustainable finance and innovation through AI and other advanced technologies.

I’m naturally skeptical about grand pronouncements from regulatory bodies, but this collaboration is promising. The UK and Singapore find themselves at similar crossroads, needing to balance innovation with stability in an increasingly AI-driven financial landscape.

If they can create a workable framework for AI governance that protects consumers without handcuffing finance innovation, it could become influential far beyond these two financial hubs.

(Photo by Adam Śmigielski)

See also: OpenAI rejects Robinhood’s unauthorised tokenised shares

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