An HSBC-backed startup is working with AI to support banks struggle money crime — and eyeing a Nasdaq IPO

The co-founders of Silent 8, from left to ideal: Michael Wilkowski, Julia Markiewicz and Martin Markiewicz.

Silent Eight

WARSAW — When it arrives to financial crime, banking companies can usually be “just one final decision away from a enormous mess,” Martin Markiewicz, CEO of Silent Eight told CNBC.

Which is due to the fact the hazard of fines and reputational damage is substantial if money firms really don’t do plenty of to stamp out crimes like dollars laundering and terrorist financing. But it takes huge amount of time and sources to examine and protect against this kind of things to do.

Markiewicz’s company uses artificial intelligence (AI) to enable economical establishments combat these challenges in a bid to reduce the amount of assets it normally takes to tackle crime, holding banking companies in the excellent publications of regulators.

“So our grand idea for a merchandise … (is that) AI ought to be accomplishing this career, not necessarily individuals,” Markiewicz claimed in an interview on Thursday at a meeting hosted by OTB Ventures. “So you should really have a capability of a million men and women and do hundreds of thousands of these investigations … with no owning this limitation of just like how major my group is.”

With Silent Eight’s earnings set to see threefold expansion this 12 months and hit profitability for the initial time, Markiewicz wants to get his firm in position to go public in the U.S.

How AI can catch criminals

Silent Eight’s software program is based mostly on generative AI, the same technologies that underpins the viral ChatGPT chatbot. But it is not qualified in the exact same way.

ChatGPT is skilled on a so-called massive language design, or LLM. This is a single established of enormous amounts of details, permitting prompt ChatGPT and get a response.

Silent Eight’s model is qualified on quite a few lesser designs that are certain to a undertaking. For illustration, one particular AI product seems to be at how names are translated across unique languages. This could flag a particular person who is perhaps opening accounts with different spellings of names throughout the world.

These smaller versions blend to type Silent Eight’s application that some of the greatest banking companies in the globe, from Normal Chartered to HSBC, are making use of to fight economical criminal offense.

Markiewicz stated Silent Eight’s AI models had been in fact trained on the processes that human investigators were carrying out within just money establishments. In 2017, Conventional Chartered grew to become the 1st financial institution to start out working with the firm’s software program. But Silent Eight’s software necessary purchase-in from Normal Chartered so the start off-up could get accessibility to the chance management info in the financial institution to develop up its AI.

“That is why our approach was so risky,” Markiewicz claimed.

“So we just understood that we will have to start with some big financial institutions 1st, for the other kinds to know that there is no risk and adhere to.”

As Silent Eight has onboarded far more banking companies as consumers, its AI has been in a position to get additional sophisticated.

Markiewicz included that for economical establishments shopping for the software program, it is “orders of magnitude” cheaper than paying all the human beings that would be demanded to do the very same system.

Silent Eight’s headquarters is in Singapore with places of work in New York, London, and Warsaw, Poland.

IPO forward

Markiewicz informed CNBC that he forecasts revenue to mature a lot more than 3-and-a-50 percent instances in 2023 compared to last calendar year, but declined to disclose a figure. He included that Silent Eight will be profitable this calendar year with more and more economic establishments coming on board.

HSBC, Typical Chartered and To start with Abu Dhabi Bank are amid Silent Eight’s dozen or so prospects.

The CEO also reported the business is not organizing to raise dollars following a $40 million funding round last calendar year, that was led by TYH Ventures and welcomed HSBC Ventures, as effectively as present buyers which consist of OTB Ventures and Regular Chartered’s investment decision arm.

But he said Silent Eight is receiving “IPO prepared” by the conclusion of 2025 with a watch to listing on the tech-large Nasdaq in the U.S. Having said that, this does not necessarily mean Silent Eight will go public in 2025. Markiewicz explained he needs the corporation to be in a great situation to go community, which implies reporting funds like a community firm, for case in point.

“It is an option that I want to have, not that you will find some obligation or some trader arrangement that I have,” Markiewicz claimed.