Google Cloud has announced the launch of its Anti-Money Laundering AI (AMLAI) service after a successful trial with HSBC. AMLAI uses machine learning to create risk profiles, monitor transactions and analyze data. The service replaces manually defined, rules-based approaches, harnessing financial institutions’ own data to train advanced machine learning models that can provide a comprehensive view of risk scores. According to Google Cloud, HSBC saw an increase of two to four times the number of positive alerts and a 60% reduction in false positives during the trial.
The cost of the service will depend on the number of customers serviced daily with the AML and risk scoring systems, as well as the number of customers included in the training dataset used to spin the model up. Google’s involvement in the anti-money laundering sector could be a positive sign for the growing industry, which is projected to reach nearly $8 billion by the end of the decade.
Aside from AMLAI, Google has been making its presence felt as both a fintech developer and banking services vendor. During the COVID-19 pandemic, Google rapidly deployed a paycheck protection program loan processing tool. The company has also dabbled in alternative payment solutions such as its widely-adopted Google Pay service and the advent of Google-sponsored debit cards featuring NFC connectivity.