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HKMA partners with Cyberport to roll out the second cohort of the GenA.I. Sandbox initiative

Tuesday 29 April 2025 13:06 CET | News

The Hong Kong Monetary Authority (HKMA) has partnered with Cyberport to introduce the second cohort of the Generative Artificial Intelligence (GenA.I.) Sandbox initiative. 

With the GenA.I. Sandbox, the HKMA and Cyberport intend to offer a risk-controlled environment for banks to develop and test solutions leveraging AI, seeking to further accelerate the adoption of this technology in the financial sector. After receiving positive responses in the inaugural cohort that started in January 2025, the second cohort is set to continue to centre on use cases that optimise risk management, anti-fraud measures, and customer experience.

HKMA, Cyberport to roll out second cohort of the GenA.I. Sandbox initiative

What will be included in the second cohort?

As part of the second cohort, the HKMA and Cyberport intend to roll out the GenA.I. Sandbox Collaboratory, a platform including a series of practical workshops that support early engagement between banks and technology providers. With these workshops, the two organisations plan to facilitate the conversion of problem statements into practical use cases, which can then be tested in the GenA.I. Sandbox. More specifically, as a response to the scaling threat of deepfake scams, the HKMA and Cyberport intend to make a dedicated GenA.I. Sandbox Collaboratory workshop on mitigating deepfake attacks with AI in the upcoming weeks. They plan to include subject matter experts from tech companies, digital banks, and small and medium-sized banks to share actionable solutions and advanced detection tools.

Furthermore, commenting on the announcement, representatives from the HKMA mentioned that the introduction of the second cohort of the GenA.I. Sandbox underlines the authority’s commitment to supporting responsible innovation in AI across the banking sector. Besides validating use cases, the cohort seeks to analyse the possibilities of ‘AI versus AI’. Additionally, the authority encourages banks to explore integrating AI into their second and third lines of defence for risk management, addressing the risks and complexities caused by AI advancements while benefiting from more capabilities.

Latest news from the HKMA

In addition to launching the second cohort, the HKMA also recently directed authorised institutions to implement more digital security measures as part of an expanded framework. This framework sought to counter the scaling of sophisticated fraud techniques, including those involving AI and deepfake technology. The HKMA formalised these updates via the launch of the ‘E-Banking Security ABC’ framework, outlining three main categories of action for banks to adopt, including in-app authentication, removal of unused functions, and cancellation of suspicious payments.

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Keywords: generative AI, artificial intelligence, financial services, risk management, fraud management
Categories: Fraud & Financial Crime
Companies: Cyberport, Hong Kong Monetary Authority
Countries: Hong Kong
This article is part of category

Fraud & Financial Crime

Cyberport

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Hong Kong Monetary Authority

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