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  • October 2019
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Regtech at HSBC

By: Aiyesha Dey, Jonas Heese and James Weber
  • Format:Print
  • | Language:English
  • | Pages:23
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Abstract

Mark Cooke, Global Head of Operational Risk, needed to decide between a traditional regulatory control system and a new regtech system to manage non-financial risks. Non-financial risks failures such as money laundering and tax evasion had cost HSBC billions of dollars in fines and settlements over the previous decade. In response, HSBC had hired thousands of risk and compliance staff and invested billions in traditional control systems. Cooke, however, could not be sure HSBC’s traditional methods were sufficient and he was worried they were not sustainable. Cooke recently ran a pilot test of a regtech solution that promised to warn of problem areas in advance, and do so at a much lower cost than traditional systems. The regtech solution provider was a small startup and the technology was not fully developed. Cooke wondered how much he could trust a technology from a startup company with a handful of employees and almost no revenue to meet the needs of a world-leading bank with global operations.

Keywords

Risk Management; Banks and Banking; Collaborative Innovation and Invention; Banking Industry; Information Technology Industry; United Kingdom; United States

Citation

Dey, Aiyesha, Jonas Heese, and James Weber. "Regtech at HSBC." Harvard Business School Case 120-046, October 2019.
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About The Authors

Aiyesha Dey

Accounting and Management
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Jonas Heese

Accounting and Management
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Related Work

    • October 2019
    • Faculty Research

    Regtech at HSBC

    By: Aiyesha Dey and Jonas Heese
    • July 2021 (Revised March 2022)
    • Faculty Research

    Video Supplement for "Regtech at HSBC"

    By: Jonas Heese and Aiyesha Dey
    • July 2021 (Revised March 2022)
    • Faculty Research

    Regtech at HSBC (with Mark Cooke)

    By: Jonas Heese and Aiyesha Dey
Related Work
  • Regtech at HSBC By: Aiyesha Dey and Jonas Heese
  • Video Supplement for "Regtech at HSBC" By: Jonas Heese and Aiyesha Dey
  • Regtech at HSBC (with Mark Cooke) By: Jonas Heese and Aiyesha Dey
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