SCMP – Alibaba Group Holding and Standard Chartered have entered a deal in which the Chinese technology giant’s artificial intelligence systems would be deployed across the operations of the British multinational bank.
The two companies signed a memorandum of understanding that would see Standard Chartered leverage solutions from Alibaba Cloud – the Hangzhou-based firm’s AI and cloud computing services arm – to enhance operational efficiency and elevate customer experience, according to a statement on Tuesday from Alibaba, which owns the South China Morning Post.
“Through this strategic alliance, we will combine Alibaba’s technological expertise with Standard Chartered’s deep industry knowledge to unlock new possibilities,” Alibaba CEO Eddie Wu Yongming said.
Their cooperation includes building AI-powered customer engagement tools, automating risk management and compliance, and talent development at the bank through AI workshops and certifications for employees.
“From education to healthcare and scientific research, AI has already shown its potential to drive transformational change,” Wu said.
The AI alliance with Standard Chartered marks the latest high-profile deal in the banking sector for Alibaba Cloud, following AI projects with China Construction Bank and Industrial and Commercial Bank of China (ICBC).
Standard Chartered CEO Bill Winters and Eddie Wu Yongming, CEO of Alibaba Group Holding,
mark the two companies’ AI deal at the Chinese firm’s headquarters in Hangzhou. Photo: Handout
ICBC, China’s largest bank by total assets, launched an “intelligent review assistant” based on Alibaba Cloud’s multimodal model, Qwen-VL-Max, to help it review materials submitted by merchants, according to Alibaba Cloud earlier this month.
The agreement between Standard Chartered and Alibaba comes several months after the London-based bank’s CEO, Bill Winters, unveiled a plan to invest US$1.5 billion in its wealth management business over the next five years.
The money will be used to develop AI tools and other technologies, and to hire more experienced bankers in wealth management to serve affluent clients in Hong Kong, Singapore and elsewhere.
That initiative is expected to help Standard Chartered achieve its goal of pulling in US$200 billion of net new money from affluent clients over the next five years, according to Winters.
For Alibaba, the cooperation with Standard Chartered is expected to boost its strategic development globally.
The bank will support Alibaba’s expansion overseas with tailored banking services, including financial support, supply chain financing and cross-border fund management, according to the statement.
“We are investing heavily in cutting-edge technologies like AI, which are transforming our own business model and reshaping the future of finance,” Winters said in the Alibaba statement.
According to a KPMG report last month, AI has “brought unprecedented efficiency improvements and innovative breakthroughs” to the banking industry, covering both front-end and back-end operations such as customer services and anti-money-laundering.
