Leveraging Explainable Artificial Intelligence to Detect Financial Fraud and Promote Transparency: A Case Study of Singapore Development Bank (2020–2024)

Abstract

This study aimed to determine the extent to which artificial intelligence, particularly Explainable Artificial Intelligence (XAI), contributes to enhancing transparency and regulatory compliance within banking institutions, focusing on the experience of the Development Bank of Singapore as an applied model. The research employed a descriptive-analytical methodology based on the collection and analysis of both quantitative and qualitative data drawn from official reports issued by the Monetary Authority of Singapore and the Bank for International Settlements, in addition to a comprehensive review of academic literature related to explainable AI in the financial sector. The findings revealed that integrating XAI technologies has strengthened regulatory trust between banks and supervisory authorities, improved the accuracy of fraud detection systems. Moreover, it has reinforced depositor and investor confidence by increasing transparency in automated decision-making processes.