HSBC has signed a collaboration agreement with Canadian artificial intelligence (AI) software company Element AI to help the bank develop the capability to quickly and effectively analyse data from clients of its Global Banking and Markets (GBM) division.
This data analysis will help the bank to more efficiently meet global regulatory requirements, such as anti-money laundering rules, as well as allowing it to predict what services and product solutions its clients may need in the future.
The partnership has been signed following a five-month global search process. The bank hopes to sign agreements with one or two more of these companies in the coming months.
“Our goal has been to find the best firms engaging in AI research and to be able to learn and partner with these companies which will allow us to co-develop new products for our clients and the broader financial services industry,” said Chuck Teixeira, Chief Administrative Officer and Head of Transformation at HSBC’s GBM division.
Element AI is a global AI software company which was co-founded in Montréal by serial entrepreneur JF Gagné and Professor Yoshua Bengio, PhD, who won the 2018 ACM Turing Award for his work on deep learning.
The partnership with the company will provide a base for joint development of AI-based software and systems which will be tested on HSBC’s global data pool in a secure environment. The Element AI team working on this partnership will be based in HSBC’s new innovation lab in Toronto that was opened last month.
“Following the creation of our big data programme in 2018 and the recent opening of our global innovation and data labs in London and Toronto, our collaboration with Element AI represents the next step in our AI transformation at HSBC,” said Andre Cronje, Chief Operating Officer for GBM.