Governing AI in the most regulated industry requires precision, auditability, and quantum-resistant security.
┌─────────────────────────────────────────────────────────────────────────────┐
│ FINANCIAL SERVICES AI GOVERNANCE LANDSCAPE │
├─────────────────────────────────────────────────────────────────────────────┤
│ │
│ AI USE CASES REGULATORY REQUIREMENTS │
│ ───────────── ───────────────────────── │
│ • Algorithmic Trading • SOX Section 404 │
│ • Fraud Detection • GLBA Data Protection │
│ • Credit Scoring • FFIEC IT Examination │
│ • Customer Service Bots • DORA (EU) │
│ • Anti-Money Laundering • Basel III/IV │
│ • Risk Assessment • PCI-DSS │
│ │
│ ┌─────────────────┐ │
│ │ SCBE Platform │ │
│ │ ───────────── │ │
│ │ Bridges AI and │ │
│ │ Compliance │ │
│ └─────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────────┘
Trading algorithms can execute millions in transactions per second. Without governance, a rogue or compromised AI could cause massive financial damage.
┌─────────────────────────────────────────────────────────────────┐
│ AI TRADING GOVERNANCE FLOW │
├─────────────────────────────────────────────────────────────────┤
│ │
│ Trading AI SCBE Platform Exchange │
│ │ │ │ │
│ │ Trade Request │ │ │
│ │ {symbol: AAPL │ │ │
│ │ qty: 10000 │ │ │
│ │ type: MARKET} │ │ │
│ │────────────────────▶│ │ │
│ │ │ │ │
│ │ ┌─────┴─────┐ │ │
│ │ │ Validate │ │ │
│ │ │ • Position limits │ │
│ │ │ • Risk exposure │ │
│ │ │ • Trader authority │ │
│ │ │ • Market conditions │ │
│ │ └─────┬─────┘ │ │
│ │ │ │ │
│ │ ┌─────┴─────┐ │ │
│ │ │ Trust: 0.89 │ │
│ │ │ Risk: LOW │ │
│ │ │ Decision: ALLOW │ │
│ │ └─────┬─────┘ │ │
│ │ │ │ │
│ │ │ Execute Trade │ │
│ │ │────────────────────────▶│ │
│ │ │ │ │
│ │ │ Confirmation │ │
│ │ │◀────────────────────────│ │
│ │ │ │ │
│ │ Trade Confirmed │ │ │
│ │◀────────────────────│ │ │
│ │ │ │ │
│ │ ┌─────┴─────┐ │ │
│ │ │ Audit Log │ │ │
│ │ │ • Timestamp │ │
│ │ │ • Decision │ │
│ │ │ • Trust score │ │
│ │ │ • All parameters │ │
│ │ └───────────┘ │ │
│ │
└─────────────────────────────────────────────────────────────────┘
# banking-trading-policy.yaml
policy :
name : " AI Trading Governance"
version : " 1.0"
trust_thresholds :
allow : 0.80 # Higher bar for financial transactions
quarantine : 0.40
deny : 0.40
risk_limits :
max_single_trade : 1000000 # $1M per trade
max_daily_volume : 50000000 # $50M daily
max_position_pct : 0.05 # 5% of portfolio
validators :
count : 5
quorum : 4
timeout_ms : 500
audit :
retention_days : 2555 # 7 years for SOX
immutable : true
external_siem : true
Fraud detection AI needs to act fast but must not block legitimate transactions or leak investigation details.
┌─────────────────────────────────────────────────────────────────┐
│ FRAUD DETECTION GOVERNANCE │
├─────────────────────────────────────────────────────────────────┤
│ │
│ Transaction ──▶ Fraud AI ──▶ SCBE ──▶ Decision │
│ │ │
│ ┌────────────┼────────────┐ │
│ │ │ │ │
│ ▼ ▼ ▼ │
│ ┌────────┐ ┌────────┐ ┌────────┐ │
│ │ ALLOW │ │ESCALATE│ │ BLOCK │ │
│ │ │ │ │ │ │ │
│ │Process │ │ Human │ │ Reject │ │
│ │ Normal │ │ Review │ │ Txn │ │
│ └────────┘ └────────┘ └────────┘ │
│ │
│ Decision Matrix: │
│ ───────────────── │
│ Trust 0.80+ AND Fraud Score < 0.3 ──▶ ALLOW │
│ Trust 0.40+ OR Fraud Score 0.3-0.7 ──▶ ESCALATE │
│ Trust < 0.40 OR Fraud Score > 0.7 ──▶ BLOCK │
│ │
└─────────────────────────────────────────────────────────────────┘
AI chatbots handle sensitive customer data and can perform account actions. They need governance without adding latency.
┌─────────────────────────────────────────────────────────────────┐
│ CUSTOMER SERVICE AI GOVERNANCE │
├─────────────────────────────────────────────────────────────────┤
│ │
│ Customer Query: "Transfer $5000 to account ending 1234" │
│ │
│ Chatbot AI │
│ │ │
│ │ Parse Intent: TRANSFER_FUNDS │
│ │ Amount: $5000 │
│ │ Destination: ***1234 │
│ │ │
│ ▼ │
│ ┌─────────────────────────────────────────────┐ │
│ │ SCBE Evaluation │ │
│ ├─────────────────────────────────────────────┤ │
│ │ Context Checks: │ │
│ │ ✓ Customer authenticated (MFA) │ │
│ │ ✓ Amount within daily limit │ │
│ │ ✓ Destination is known account │ │
│ │ ✗ Unusual time (3 AM) │ │
│ │ ✗ New device detected │ │
│ │ │ │
│ │ Trust Score: 0.55 (MEDIUM) │ │
│ │ Decision: QUARANTINE │ │
│ └─────────────────────────────────────────────┘ │
│ │ │
│ ▼ │
│ Chatbot Response: │
│ "For your security, this transfer requires additional │
│ verification. You'll receive a call from our security │
│ team shortly." │
│ │
└─────────────────────────────────────────────────────────────────┘
SOX Requirement SCBE Feature Document controls Policy-as-code, version controlled Test controls Automated test suite (692+ tests) Evidence retention 7-year immutable audit logs Segregation of duties Multi-signature consensus Access controls API key authentication, role-based
GLBA Requirement SCBE Feature Safeguard customer info Post-quantum encryption Access limitations Trust-based access control Disposal Cryptographic erasure support Incident response Real-time alerting, quarantine
FFIEC Control SCBE Feature IT governance Documented architecture Information security Defense-in-depth, PQC Audit Complete decision trail Business continuity Multi-region deployment
DORA Article SCBE Feature Art 5: ICT risk management Risk scoring engine Art 8: Identification Agent identity management Art 9: Protection Cryptographic envelopes Art 10: Detection Anomaly detection, alerts Art 11: Response Quarantine, fail-to-noise
┌─────────────────────────────────────────────────────────────────┐
│ BANKING SYSTEM INTEGRATION │
├─────────────────────────────────────────────────────────────────┤
│ │
│ ┌──────────────┐ ┌──────────────┐ ┌──────────────┐ │
│ │ Core │ │ SCBE │ │ Channel │ │
│ │ Banking │◀───▶│ Platform │◀───▶│ Systems │ │
│ │ System │ │ │ │ │ │
│ └──────────────┘ └──────────────┘ └──────────────┘ │
│ │ │ │ │
│ │ │ │ │
│ ▼ ▼ ▼ │
│ ┌──────────────┐ ┌──────────────┐ ┌──────────────┐ │
│ │ Account │ │ Audit │ │ Mobile │ │
│ │ Ledger │ │ Trail │ │ Banking │ │
│ └──────────────┘ └──────────────┘ └──────────────┘ │
│ │
│ Integration Points: │
│ • REST API (OpenAPI 3.0) │
│ • Message Queue (Kafka/RabbitMQ) │
│ • Database CDC (Change Data Capture) │
│ • SIEM integration (Splunk/QRadar) │
│ │
└─────────────────────────────────────────────────────────────────┘
DAILY OPERATIONS
────────────────
08:00 Review overnight QUARANTINE decisions
└── SCBE Dashboard ──▶ Approve/Reject queue
09:00 Check trust score trends
└── Anomaly alerts ──▶ Investigate deviations
12:00 Policy update review
└── Change request ──▶ Test ──▶ Deploy
15:00 Audit log sampling
└── Random selection ──▶ Verify completeness
17:00 End-of-day report
└── Automated summary ──▶ Management
Week Activities Deliverables 1-2 Discovery Regulatory mapping, AI inventory 3-4 Design Policy configuration, architecture 5-6 Development API integration, testing 7-8 UAT User acceptance testing 9-10 Pilot Production deployment (limited) 11-12 Rollout Full deployment, training
Metric Before SCBE After SCBE Improvement Fraud detection time 4 hours 50ms 99.99% False positive rate 15% 3% 80% Audit preparation 2 weeks 2 hours 99% Compliance violations 12/year 0/year 100% AI incident response 48 hours 5 minutes 99.8%
Schedule Discovery Call : Map your AI landscape and compliance requirementsPilot Program : 10-week proof-of-value engagementProduction Deployment : Full rollout with training © 2026 Aethermoore - Issac Davis, Founder | Patent Pending (63/961,403) | Products | Demo