FCC Analytics signs up two digital banks in HK

Source: FCC Analytics. Front row, from left: Henry Yu, Chief Compliance Officer, Airstar Bank; Wallace Chow, Founder & CEO, FCC Analytics; and Ada Yuen, Chief Risk Officer, livi Bank. Back row, from left: Sunny Xu, Head of Financial Crime Compliance, Airstar Bank; Luke Ng, CTO, FCC Analytics; and Karen Kwok, Head of Financial Crime Compliance, livi Bank.

Regtech firm FCC Analytics has signed a memorandum of understanding (MoU) with Airstar Bank and livi bank, two digital banks in Hong Kong, to adopt federated learning technology for anti-money laundering (AML). This initiative enhances the banks' ability to meet compliance requirements, strengthens the monitoring process, and reduces the operational costs associated with traditional AML methods.

Wallace Chow, Founder and CEO of FCC Analytics said: “Our vision is to support banks in combating financial crime by driving a peer-to-peer federated learning network across the Asia Pacific for various collaborative purposes.”

Henry Yu, Chief Compliance Officer of Airstar Bank said: “This partnership marks a significant step forward in our commitment to combating financial crime. By leveraging federated learning, we can enhance our AML capabilities while maintaining the highest standards of data privacy.”

Federated learning enables these banks to share insights on potential money laundering activities without compromising sensitive customer information. The technology ensures that data does not leave the local servers of the banks. Suspicious patterns can be detected more easily across banks, without the need to share raw data.

Karen Kwok, Head of Financial Crime Compliance at livi bank, remarked, “The ability to share insights without compromising customer data is revolutionary. This initiative not only strengthens our compliance efforts but also reinforces our dedication to protecting our customers and the integrity of the financial system.”