Last week, the Hong Kong Monetary Authority (HKMA) announced the launch of Project SAGE, an initiative to support the responsible development and adoption of agentic AI in financial services, with a focus on governance, security, interoperability, and regulatory considerations.
Project SAGE, which stands for “Securing Agentic Finance with Governance and Enablement,” will support industry efforts to explore and validate applications of AI agents in financial transactions. Potential use cases include consumer payments, business procurement and treasury management, and automated payments between machines for digital services.
“Agentic finance has the potential to transform how financial services are delivered and utilised,” said Eddie Yue, Chief Executive of the HKMA. “By introducing a series of initiatives and facilitating exchanges with industry experts, we aim to foster innovation while reinforcing Hong Kong’s leading role in next generation of financial technology. These initiatives will help us navigate the opportunities and challenges ahead, ensuring that agentic finance serves the best interests of users while safeguarding the stability of our financial system.”
The initiative will also examine approaches to verifying AI agents’ identities and delegated authority, including Know Your Agent (KYA) practices and authentication mechanisms. Other priorities include developing industry dialogue on interoperability standards and addressing legal and regulatory questions involving governance arrangements, liability, and consumer protection.
To support the initiative, the HKMA has established an Agentic Finance Expert Group comprising representatives from financial institutions, technology providers, professional services firms, and academia. The group will contribute expertise and industry perspectives as Project SAGE develops.
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