In addition, because the banks will be Already the banks have finally agreed to tions like enhanced due diligence reports, able to look at all their data, across all pool anonymised credit data to improve risk and compliance advice and HR ser- sectors, geographies and company sizes, their own risk management and pricing vices. There is no guarantee that this kind they should be able to provide the kind methodologies without AI. London- of development will benefit all corporate of benchmarking and advisory services based credit risk management startup customers and AI will simply make the that treasurers have sought for the last Credit Benchmark was founded in 2012 analysis more profound. 20 years. by ex-Goldman Sachs and Lehman Brothers employee Mark Faulkner. It Not quite yet However, there is a flip side to all this. specialises in pooling, aggregating and The banks’ investments in AI and anonymising credit risk data from lead- The more ambitious of these advances advanced analytics will be driven first ing global banks, so that financial institu- are some way off. Banks have found the and foremost by a desire to improve tions can make better risk management task of aggregating and centralising their their own profitability. Their new-found and capital allocation decisions. global databases extremely difficult and knowledge may well be used to examine they will continue to do so. Only when which clients are profitable and which In AML/KYC, there are companies like that problem is solved can they then are not; how different products and ser- ComplyAdvantage – an AI and machine begin to apply AI and other techniques vices should be priced according to indi- learning RegTech startup to provide busi- to those datasets and start to modify vidual customer’s needs; which clients nesses with a feed of proprietary anti- their offerings meaningfully. are actually far more of a credit risk money laundering (AML) risk data as well than existing internal models and rat- as on-boarding screening solutions and a In the meantime, AI is being applied to ings suggest because of their exposures monitoring platform for know your cus- discrete functions that do not rely upon to other companies or risks made visible tomer (KYC) processes. The system col- that aggregation of customer data. So by these advanced analytics; which cli- lects data from sources such as Interpol’s companies will be able to benefit from ents do not meet their AML/KYC watch list, international sanctions and advances in, for example, asset manage- requirements because of the nature of media reports to automate due diligence ment where companies like Aidyia and their third-party relationships or pay- on clients that pose a criminal risk. Off Kensho are using machine-learning to ment flows – and so on. the back of this data it can provide solu- run portfolios. www.eurofinance.com TREASURY PERSPECTIVES 2017/2018 // 15