The aim is to flag desirable prospective clients to HSBC staff and to pave ways in connecting them through relationship currently existed with the bank. Considering this, the algorithm was designed to combine data related to banking activities of clients with public data of company’s owners and directors.
HSBC is making use of available data and artificial intelligence. This initiative is one of the first uses of investment in a fraud prevention system at commercial level. The system maps ties of companies and individuals with other and then search for any unusual transaction patterns or detect unknown links between those entities that was not known previously.
Moreover, in the US in 2012, HSBC settled with authorities for USD 1.9 billion over its failure to prevent money laundering by drug dealers through its Mexican unit, and part of that settlement was imposition of a condition of investing hundreds of millions of dollars to comply with financial crime regulations.
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