HSBC Holdings has partnered up with a startup from Silicon Valley called Ayasdi. Ayasdi Inc. will implement artificial intelligence to automate some of the bank’s compliance processes in a bid to make them more efficient.
Ayasdi helps companies around the world use artificial intelligence and big data to make employees hundreds of times more productive and to drive fundamental breakthroughs that are beyond the capabilities of humans. The company was founded in 2008; its executive chairman and cofounder, Gurjeet Singh was made part of HSBC’s technology advisory board in January according to Reuters, to provide guidance on the bank’s digital strategy.
Ayasdi will help the banking group implement their AI technology to automate anti money-laundering investigations which usually calls for exhaustive deployment of human resources, time and money. HSBC’s COO, Andy Maguire was cited Ayasdi Inc. as saying a large portion of a company’s resources are wasted and unfruitful when invested in human led investigations of anti money laundering.
The vast majority of anti money-laundering investigations at banks do not find suspicious activity, resulting in a waste of resources, according to the startup.
In 2012, HSBC doled out 1.92 billion dollars in fines to the U.S. authorities for allowing itself to be used to launder drug money out of Mexico and for other compliance lapses.
Reuters further reported that Ayasdi's pilot project of its technology for HSBC saw the number of investigations drop by 20 percent without reducing number of cases referred for more scrutiny.
"It's a win-win," Maguire had said according to Reuters. "We reduce risks and it costs less money."