The National Bank of Slovakia (NBS) and the STU Faculty of Electrical Engineering and Information Technology (FEI) have presented INOLab - a centre for innovation and cyber security. INOLab transfers the results of the FEI's scientific, research and innovation activity in the field of artificial intelligence, machine learning, SecDevOps, cyber security and others directly into the NBS practical applications, thus helping the Central Bank develop and innovate its services, processes, cyber security and information systems, as well as improve the quality of data collection and analysis.
INOLab is the FEI and NBS joint Centre for innovation and cyber security, established as a special purpose facility at the FEI in 2020, based on a signed memorandum and cooperation agreements with the NBS. The National Bank of Slovakia provided funds in the amount of 300,000 euros to build the centre at the FEI, comprising laboratories, offices, meeting rooms, auditorium and a lounge, while providing a regular annual contribution to finance the activities and operation of INOLab.
"We are honoured to cooperate with the first University of Technology in Slovakia. We decided to support INOLab as we realise that even the best decisions must be based on quality information and data. Since 2020, we have spent 680,000 euros on this joint project, and I cannot recall better invested money, though it is not just about the money. Primarily, it is about the ability to connect people, theory and practice. INOLab thus connects the scientific and research teams of FEI with the NBS experts and their 30-year practical experience," stated Peter Kažimír, the NBS Governor.
"I am proud that two STU faculties play a direct role in Slovakia in the field of cyber security. In cooperation with such an important partner as NBS, one of them has managed to build a facility that can protect the interests of the entire Slovak Republic in the long term, thereby contributing also to further development of STU," said Rector Moravčík.
Within the INOLab's activities, the FEI's scientific, research and innovation knowledge base in the field of artificial intelligence, machine learning, SecDevOps, cyber security and others is transferred directly into practical applications in NBS with the aim to develop and innovate the NBS services, processes, cyber security and information systems. About twenty FEI experts are currently involved in the INOLab's activities: three professors, three associate professors or PhD. assistants, four to six PhD and Master degrees students and two experts from practice. Both, NBS and FEI, regard the project as one of the most successful collaborations of the academic and financial sectors.
The NBS can utilise the results of cooperation with STU FEI to identify unauthorized activities on the financial market. Machine learning and artificial intelligence algorithms will more effectively process the information provided on websites and compare it with the list of entities that have the permission of the NBS or other EU supervisory authorities. Currently, the NBS and other central banks deal with majority of the unauthorized activities on the basis of motions, complaints, or randomly. With the new system, consumers will access information about suspicious entities faster, and the NBS will have a better idea of the state of financial market. The application of artificial intelligence algorithms will more accurately estimate the probability of a client failure to repay a loan, it will help in bank supervision and in communication with banks and improving their models. It will enable better identification of anomalies, invalid and erroneous values that commercial banks provide to the NBS Register of Bank Loans and Guarantees. Artificial intelligence will help detect the deficiencies in the data, which the NBS is often unable to detect using standard procedures.
Another team of experts from INOLab is jointly involved in improving the NBS processes related to cyber security. This mainly concerns the (re)definition of certain processes or a design for the automation of certain processes and their parts with the aim of increasing the level of cyber security and saving employees' working time, thereby accelerating and optimising the processes.