Navigating Transparency and Documentation under the EU AI Act: A Legal Perspective for Financial Institutions

The EU AI Act: What Financial Institutions Need to Know

AI is changing the game in finance — from credit scoring to fraud detection. But innovation comes with responsibility. The new EU AI Act sets clear rules for how AI may be used, especially when it directly impacts people’s financial opportunities and privacy.

Why this matters now

If you're working with AI in credit, risk, or compliance, the AI Act is not just another regulation. It classifies systems like credit scoring models, underwriting tools and AML solutions as high risk, requiring:

• Transparent decision-making

• Human oversight

• Thorough documentation

• Stronger collaboration across legal, data and IT

Financial institutions must now go beyond implementation — they’re expected to own the technology they use, even if developed by third parties.

From regulation to opportunity

This isn’t just about avoiding penalties. The AI Act creates an opportunity to lead with trust, transparency and responsible innovation. Institutions that act early can turn compliance into a competitive advantage.

Curious how to prepare? Want to know what changes for your AI governance?

👉 Read the full article in our whitepaper to click below:

The EU AI Act: What Financial Institutions Need to Know