Financial crime-spotting algorithm used in new business opportunities

HSBC has converted a financial crime-spotting algorithm it was forced to build in the wake of a money-laundering scandal into one that can scope out new business opportunities.

The system combines data on clients’ banking activities, with public data on company ownership and directorships, to flag desirable potential clients to HSBC staff and offer ways to connect to them through existing relationships.

The drive is seen by some as part of the bank’s efforts to defend its global presence at a time when some analysts and investors are saying it should shrink or exit markets like the United States where it makes returns below its cost of capital.

HSBC was forced to invest hundreds of millions of dollars in financial crime compliance as part of a $1.9 billion settlement in 2012 with U.S. authorities over the bank’s failure to prevent money laundering by drug cartels.

Finance,

Information Technology