HSBC teams with AI start up to combat money laundering

Written by on June 16, 2017 in Guest Blog with 0 Comments

By Leremy /

As compliance costs continue to rise, HSBC has partnered with AI startup Ayasdi to fight money laundering more efficiently.

Ayasdi will help HSBC to automate parts of its anti-money laundering (AML) compliance and investigation processes that have traditionally been conducted manually by thousands of compliance officers.

Despite advances in technology, traditional AML investigations in banking remain complex and often fail to reveal evidence of money-laundering, instead producing false positives that require deeper review and lead to wasted resources. Chief Marketing Officer at Ayasdi, Jonathan Symonds, stated:

“Anti-money laundering is a particularly challenging area of regulation for banks and even more so for large, geographically diverse institutions. What makes AML such a difficult problem to solve is that it involves complex data, detailed workflows, and significant human involvement. In short, it is perfect for AI.”

“At the heart of the problem is the balance between signal and noise. Too much noise in the form of false positives increases costs for the bank as they need to investigate the suspicious activity reports. Too little signal means that the bank might miss criminals triggering a number of negative regulatory outcomes ranging from fines to physical observation,” he continued.

Ayasdi is an advanced analytics company that offers a machine intelligence platform to global 500 corporations and governments around the world. The company’s platform combines scalable computing and big data infrastructure with the latest machine learning, statistical and geometric algorithms and topological data analysis to enable data scientists, experts, and business people to be exponentially more productive.

Ayasdi’s Executive Chairman and Co-Founder Gurjeet Singh was recently appointed to HSBC’s technology advisory board, which provides advice and guidance to the bank on digital strategy.

More on Reuters/Company Website.

This article was originally published on TheFinTechBuzz.

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About the Author

About the Author: Anthony is currently a Senior Fintech Analyst at Expert Market Insight and the Director of Content at BreakingFinance, a fintech content creation firm. After spending several years tracking and analyzing technologies and investments at Israel Venture Capital, he now focuses his time conducting research and analysis on the global fintech industry to help startups, financial institutions and finance-related companies develop insightful content. Anthony’s areas of expertise include payments, trading & investing, banking, blockchain and digital currencies. He is also the lead contributor at industry blog. .


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