Welcome to the HSBC Horizon: Issue 2
Welcome to The HSBC Horizon, a news series curated for HSBC by SAS. These installments are designed to keep HSBC colleagues in the loop about our partnership investments, provide expert insights on the current banking landscape and ensure HSBC are on the pulse of upcoming digital trends!
Introducing Stephen, your HSBC Account Director
Hello HSBC colleagues! I’m Stephen, the Global Account Director for HSBC at SAS. I’ve had the honour of leading the SAS team that work with HSBC over the past 3 years to help them achieve objectives and solve intricate business challenges. Working with the remarkably diverse and skilled teams at HSBC to foster innovation within the bank has been an incredible opportunity.
I’m looking forward to connecting with a multitude of HSBC SAS Users around the world with the second issue of the Horizon!
HSBC & SAS: Our Partner Story
SAS & HSBC share over 30 years’ of partnership. From reducing loss collections to accelerating innovation credit control, the following video maps out the key successes that have arisen from our journey together, celebrating a history of collaboration and innovation.
Partnership Headlines
HSBC Keynote at the Rethinking Risk Management in Financial Services Event
HSBC colleagues joined SAS & The The Financial Times at the Rethinking Risk Management in Financial Services event where Mike Roberts, Head of Unsecured Retail Risk at HSBC was the Keynote interview. This session highlighted the critical role of data in driving effective, efficient, and timely decision-making, specifically focusing on credit decisioning and lending. Balancing technology and controls in a time of instantaneous decision making and leveraging the wealth of new data sources was a theme of the excellent discussion.
We explored ground-breaking approaches to data collection and analytics, showcasing their transformative potential across various operational aspects—from onboarding to service provision, and even in managing fraud, financial crime, and credit.
Machine learning can speed things up and make things cheaper and easier but it’s how we can take a breath and think ‘is this right for the customer?’… as long as we’ve got this as our North Star in terms of what we’re trying to achieve we should be okay Mike Roberts
HSBC & SAS at Experience Analytics
We're thrilled to share highlights from the recent Experience Analytics event, "Crossing the Try Line: The Journey to AI Success," which took place on 7th November 2023 at Twickenham, London. Michael Stone, Global Head of Decision Systems at HSBC, as well as experts from SAS discussed retail credit lending at HSBC and the evolution it has gone through over the last 5 years.
The future of analytics was a central topic of discussion, exploring it’s effect on HSBC’s decision systems. Michael Stone, shared valuable insights and perspectives on how HSBC envisions the future. His contributions were instrumental in inspiring innovation and igniting fresh ideas, reinforcing the journey to AI success.
We're thrilled to witness the growth of our partnership, helping HSBC make smart decisions and deliver optimal customer outcomes. By modernizing the bank's decision ecosystem for credit lending, we're tapping into the potential of unlocking insight-driven customer journeys. This not only ensures organisational agility but also optimises lending decisions, aligning with a customer-focused strategy that values individual journeys. Johnny Steele Head of Banking SAS
HSBC Executive Briefing Centre Birmingham
SAS recently partnered with HSBC in Birmingham for an Executive Briefing on "Risk transformation for a digital world." The session delved into evolving risk management dynamics, aligning with real-time customer interactions and dynamic markets.
We explored the effect of HSBC and SAS's strong partnership, highlighting joint efforts in regulatory compliance and innovative risk management, focusing on Credit Lifecycle Management, Consumer Duty Readiness, Model Risk Management, Integrated Balance Sheet Management, and Climate Risk Management.
The event explored the critical role of data, analytics, and an integrated technology ecosystem in establishing a transparent risk function. We discussed how HSBC can enhance its risk approach using the latest SAS capabilities and targeted risk business solutions.
The agenda included an HSBC and SAS overview, discussions on risk evolution in a cloud-native, data-driven context, embedding trust in next-gen Risk Modelling, the importance of an integrated ecosystem, a focus on Model Risk Management, and productive dialogues on next steps for collaborative progress.
We appreciate the active participation and engagement, contributing to the event's success. The SAS team had a wonderful time and enjoyed delving into our partnership wins and ideas for future innovation!
HSBC & SAS Decisioning Showcase
SAS were back in the HSBC offices in Sheffield for the HSBC & SAS Decisioning Showcase event on Monday 13th November. Following on from the success of last year’s showcase, this year’s event will provided an update on some of the key activity that has taken place in 2023 as well as plans for 2024. Colleagues in Decision Systems spoke on how they are using SAS ID – their processes, the challenges they are facing, and the benefits they are realising. In addition, the afternoon session included some great content for the Risk teams that work closely with Decision Systems.
Swaroop A Kumar, Head of FST Analytics & Decision Systems, joined us, delivering an insightful keynote that highlighted achievements from the past year and discussed plans for 2024. During the discussion, Swaroop delved into Project Horizon, emphasising its focus on fixing foundational elements for the upcoming year. The aim is to maximise the potential of the FSA platform, harnessing the capability and minimise troubleshooting efforts. A significant part of the conversation revolved around the impact on metrics, highlighting a substantial number of changes implemented this year—specifically, an impressive 200 production changes per month. Notably, these changes contributed to a pre-tax profit of $5.3 billion and generated $8.4 billion in revenue.
Award News
SAS & HSBC named in Global FinTech Innovation Awards 2023 in Best Risk Management Implementation category with a win for Best Project Implementation.
SAS & HSBC in their Most Crucial Decisioning Challenge of the Festive Season
HSBC has been commended for their decision systems and their smart decisions don’t stop at credit lending and customer journeys. Arguably one of the most essential decisions to be made by the HSBC team in Q4 unfortunately cannot be aided by AI or analytics. We are of course talking about Mince Pie Wednesdays as Jayne, your Account Executive, joined the HSBC team in their hunt for the best mince pie variety in the run up to Christmas. A fun-filled touch of festivity and collaboration which got everyone feeling Christmassy.
Research spotlight: Chartis RiskTech 100 2024 names SAS as top in seven technology award categories
Continuing its march up the world’s foremost ranking of the top 100 risk management and compliance technology providers, SAS is ranked no. 2 and bested technology award categories including AI for Banking, Balance Sheet Risk Management, Behavioral Modeling, Enterprise Stress Testing, IRFS 9, Model Risk Management an Risk and Finance Integration
In today’s ultra-competitive environment, making faster, more holistic decisions is essential to creating a differentiated customer experience. This is where our integrated, cloud-first solutions across risk, fraud, and anti-money laundering compliance excel. Behind the scenes, SAS’ governed approach to data orchestration and deployment of AI delivers multi-dimensional decisioning that helps firms dismantle operational silos, simplify complex IT infrastructures and reduce costs.Stu Bradley Senior Vice President of Risk, Fraud and Compliance Solutions SAS
The only vendor to place in the RiskTech100’s Top 5 since Chartis debuted the venerable list in 2005. SAS’ newly earned second-place ranking and diverse category wins show that the AI and analytics leader remains a risktech trailblazer.
Hot Topics for HSBC
- Consumer Duty Readiness
- The Economic Potential of Generative AI
- Will Regulation Redefine Innovation?
- Looking to the Future
Consumer Duty Readiness
What steps need to be taken across HSBC to meet the FCA’s new regulation? Following the arrival of the FCA’s Consumer Duty, it is clear banks, building societies and insurers need to rethink every aspect of their relationships with retail customers, including their use of AI in decision-making. With the FCA taking a robust position on enforcement, what steps need to be taken across the organisation to meet the new regulation? What compliance risks could arise without trustworthy AI practices in place? And how can organisations build a long-term responsible AI strategy from Consumer Duty PS22/9?
The Economic Potential of Generative AI
Based on 63 use cases of Generative AI, McKinsey estimates that Generative AI has the potential to generate 2.6$ to 4.4$ trillion in value across industries.
McKinsey furthermore predicts that current Generative AI technologies have the potential to automate work activities that absorb 60 to 70 per cent of employees’ time today. What is also interesting is that Generative AI is likely to have the biggest impact on knowledge work, particularly activities involving decision-making and collaboration, which previously had the lowest potential for automation.
Will Regulation Redefine Innovation?
In a landscape where getting compliant fast means getting ahead, how will regulation redefine innovation?
As scrutiny and regulation grows, questions of how institutions can embed climate risks and strategies into models. The PRA’s Model Risk Management Principles mean change in practice for banks and the ways of working, alongside the new consumer duty rules which call into question the use of AI and machine learning.
Looking to the Future
Recent events have demonstrated that even the soundest economic theory is no match for pandemics, natural disasters, war and geopolitical instability. Banks need to need to align with regulatory and ESG mandates, to model and mitigate risk, to protect against fraud and cybercrime, to take advantage of Open Banking ecosystems, and to create better customer experiences. But without the right technology this is challenging.
What’s going on outside HSBC!
Stress Testing becomes a Competitive Advantage at Standard Chartered
Building on a platform originally designed for compliance with IRFS 9, Standard Chartered partnered with SAS to create a scenario-based analytics platform (SBAP).
“ We made a giant leap in terms of our capability in stress testing because of SAS."
Daniel Gelinas • Head of Stress Testing Strategic Program • Standard Chartered
Viya & Cloud Modernisation at Shawbrook Bank
Shawbrook Bank’s CRO discussed the benefits to the business:
“ First and foremost, being able to tackle our data wherever and however it’s delivered to us – whether that’s on-premise or the cloud – and having those connectors in place so it doesn’t matter to the modeler, the user or the business intelligence person wherever they are is going to be really key. "
ITV and SAS deliver Personalised Ads to 37 million Users of ITVX
Our intelligent advertising solution SAS 360 Match, delivers personalised advertising at scale in a flexible and transparent way yet can handle complex business rules and criteria.
“ The best part of working with SAS 360 Match is its flexibility. I always describe SAS Ad Server as a toolkit rather than just a pure Ad Server. There are so many hidden little gems that allow us to make improvements. "
Alex Maison • Head of Digital Ad Platforms • ITV
Useful Links for HSBC
A new manifesto for the future of banking
Five key principles to make banking simple, safe and rewarding for everyone.
