SEOUL, June 20 (AJP) - South Korean banks are increasingly deploying artificial intelligence to bolster internal control systems, aiming to prevent financial misconduct and tighten compliance oversight by minimizing human error and bias, according to industry officials on Friday.
The adoption spans a range of applications — from AI algorithms that flag suspicious transactions and detect mis-selling to chatbot systems designed to process whistleblower reports.
Woori Financial Research Institute recently recommended integrating AI-powered chatbots into banks’ fraud prevention and early detection mechanisms, citing international examples including Kimberly-Clark in the United States and Canada’s Department of Justice, both of which have implemented similar tools to collect internal reports.
“The psychological burden of reporting, distrust in outcomes, and low expectations around processing often discourage organizational members from filing compliance reports,” the institute noted in a report. AI chatbots, it suggested, could help address these issues by providing a neutral, efficient and anonymous reporting channel.
Woori Bank introduced a confidential reporting platform, known as “Helpline,” earlier this year. The research institute’s report proposed fully automating this system in future iterations through AI technology, enabling more comprehensive data analysis and long-term risk assessment.
Other major financial institutions are also integrating AI into their compliance and advisory workflows.
KB Kookmin Bank has deployed AI-driven systems at branches to help prevent product mis-selling and flag suspicious activity, while Hana Bank is developing generative AI tools to manage internal policy documentation and translate regulatory texts for its overseas operations.
NH Nonghyup Bank, meanwhile, has rolled out an AI-based credit inspection platform that analyzes past audit reports to automatically identify high-quality borrowers and closely monitor high-risk clients.
reporter
Candice Kim
candicekim1121@ajupress.com
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