Financial Services

AI Compliance for Banking & Insurance

Navigate EU AI Act requirements for credit scoring, underwriting, and financial AI systems with confidence.

Schedule Demo View Use Cases
85%
Banks Using AI
€35M
Maximum Fine
2026
High-Risk Deadline
10 Yrs
Doc Retention

Financial AI Challenges

Unique compliance considerations for the financial sector

Credit Decisions

AI-powered credit scoring and lending decisions are explicitly classified as high-risk systems.

Multi-Regulation

EU AI Act overlaps with DORA, MiFID II, CRD, and GDPR creating complex compliance matrices.

Consumer Impact

Financial AI decisions directly affect individuals' access to essential services and opportunities.

Bias Risk

Discriminatory outcomes based on protected characteristics trigger both AI Act and financial regulation penalties.

Financial AI Use Cases

Comprehensive compliance for every financial AI application

High Risk - Annex III Most Scrutinized

Credit Scoring & Loan Decisions

AI systems evaluating creditworthiness or determining access to credit are explicitly listed as high-risk under Annex III. Includes automated loan approvals, credit limit decisions, and risk-based pricing models.

Automated lending
Credit limit decisions
Risk-based pricing
Governum Features
  • EBA-aligned templates
  • Bias testing framework
  • FRIA documentation
  • Fairness metrics
High Risk - Annex III Essential Services

Insurance Risk Assessment

AI used for life and health insurance pricing, claims assessment, and underwriting decisions falls under high-risk classification. These systems directly impact individuals' access to essential services.

Premium pricing
Claims assessment
Underwriting AI
Governum Features
  • Pricing transparency
  • Non-discrimination testing
  • Appeal mechanism docs
  • Human review tracking
Context-Dependent Classification Varies

Fraud Detection & AML

Fraud detection and anti-money laundering AI classification depends on deployment context. Real-time blocking is typically limited risk, while systems affecting account access may be high-risk.

Transaction monitoring
Account blocking
SAR filing assistance
Governum Features
  • Classification wizard
  • Context assessment
  • False positive tracking
  • Escalation workflows
MiFID II Overlap Minimal AI Act Risk

Algorithmic Trading

AI-driven trading systems are generally minimal risk under EU AI Act but remain subject to MiFID II algorithmic trading requirements. Integration with existing compliance frameworks is essential.

High-frequency trading
Portfolio optimization
Market making
Governum Features
  • MiFID II alignment
  • Algorithm testing docs
  • Kill switch records
  • 5-year retention

Navigating Multiple Regulations

Financial institutions must comply with the EU AI Act alongside existing regulations. Governum creates unified documentation satisfying multiple frameworks.

CRD/CRR
Capital Requirements
DORA
Digital Resilience
MiFID II
Markets Directive
GDPR
Data Protection
Governum for Finance
  • Credit Model Documentation

    Templates aligned with EBA guidelines on IRB models

  • Bias Testing Framework

    Automated fairness metrics for protected characteristics

  • Model Risk Management

    SR 11-7 compliant model inventory and validation

  • Audit Trail

    10-year retention with cryptographic integrity

  • Regulatory Reporting

    Export-ready docs for supervisory reviews

Built for Financial Services

Enterprise features for banking and insurance AI governance

Model Risk Management

SR 11-7 compliant model inventory. Validation workflows, performance monitoring, and model lifecycle documentation.

Fairness Testing

Automated bias detection across protected characteristics. Disparate impact analysis and demographic parity metrics.

10-Year Retention

Immutable audit trails with cryptographic integrity. Long-term storage meeting financial regulation requirements.

DORA Integration

Digital Operational Resilience Act alignment. ICT risk management documentation for AI-dependent processes.

Group-Wide Governance

Manage AI compliance across banking groups. Subsidiary-level controls with consolidated group reporting.

Supervisory Ready

Export-ready documentation for regulatory inspections. EBA, EIOPA, and national supervisor aligned reports.

Key Dates for Financial Services

Plan your compliance roadmap with these critical deadlines

Feb
2025
Prohibited Practices

Social scoring and manipulative AI systems banned

Aug
2025
GPAI Obligations

Foundation model transparency requirements

Aug
2026
High-Risk Systems

Full compliance for credit & insurance AI

Aug
2027
Full Enforcement

All provisions fully enforceable

Case Study

Tier 1 European Bank

"Governum transformed our approach to AI model governance. We inventoried over 150 AI systems across retail and corporate banking, identified 23 high-risk systems requiring full compliance, and established a sustainable governance framework."

150+
AI Systems Inventoried
23
High-Risk Identified
60%
Documentation Time Saved
100%
Supervisor Ready

Chief Risk Officer
Top 10 European Bank

Ready to Ensure Your AI Compliance?

Join leading financial institutions using Governum to navigate EU AI Act requirements.

Schedule Financial Services Demo Contact Financial Services Team