AML Innovation - Transaction Monitoring: Francisco Mainez, Head of Data and Analytics, Business Financial Crime Risk, HSBC (London, September 2020)

Marie Lundberg and Sam Sheen chat with Francisco Mainez, on his career transition from military intelligence to financial services technology, the role of Data Analytics in a financial institution and how it supports financial crime investigations, moving towards a more effective transaction monitoring methodology by moving from a rules-based approach to one based on machine-learning, whether "one size fits all" approach to transaction monitoring rules works for firms with a global reach, mitigating the potential risks of customer risk profiling that may lead to financial exclusion for some consumers. Francisco also talks about the recent pilot his team is running in using different monitoring scenarios based on the regional financial risks experienced by two different jurisdictions along with that age old problem of data quality and the best way forward and the possible future use of micro-segmentation to align customer risk profiles with their ongoing transaction activity.