The Application of Artificial Intelligence in Cross-Border Payments by Hong Kong Virtual Banks: A Case Study and Exploration of Opportunities

Abstract

This study wants to see how virtual banks in Hong Kong use artificial intelligence (AI) to improve the security and speed of cross-border payment, so that more people can use them conveniently. We pay special attention to the practical methods used by ZA Bank and Mox Bank in Payment Connect system. We find that ZA Bank uses network analysis to find out the risks at the group level, while Mox Bank uses behavior modeling to find out the anomalies of individual users. Using these two methods together can make the payment process safer and more convenient for users. We have also noticed that these technologies can help small and medium-sized enterprises get funds faster, and also support new energy enterprises and disabled consumers to use cross-border services. This study uses the methods of literature review, case comparison and basic data analysis to fill a blank in the field of local virtual banking in Hong Kong. It provides new practical evidence for existing theories and practical suggestions for banks and regulators, which will help Hong Kong maintain its position as a leading financial technology center in Asia.