HSBC’s cloud-based FX service targets APAC banks and embedded fintechs

HSBC’s FX services will now be distributed via Finastra’s FusionFabric under a Banking as a Service (BaaS) experience.

Finastra and HSBC reached an agreement to take advantage of the best elements of modern API-driven connectivity with licensed institutions’ secure, regulated infrastructure.

In the first phase of the rollout, customers will be provided with both indicative and executable FX rates to regional mid-tier banks via a plug-in to Finastra’s Fusion Kondor, a solution with low maintenance and ownership cost, backed by the liquidity and robust risk management capabilities of one of the world’s largest FX franchises.

Mid-tier banks will thus be able to integrate the HSBC FX services to deliver a wide range of currencies to their customers through branch networks and other retail channels, without requiring any additional technology integration, as well as highly automated FX pricing capabilities, allowing banks to process higher FX volumes, and to differentiate themselves while maintaining their own customer relationships.

The service enhances the transparency of pricing and market conditions, ease of execution, and currency risk management.

The initial rollout, starting in H2 2022, will focus on the Asia Pacific, with other regions to follow soon after. It will also be made available to embedders who require direct access to FX liquidity and pricing.

Richard Anthony, HSBC’s Global Head of FX eRisk & Precious Metals said: ”We are delighted to be working with Finastra. As one of the world’s leading FX banks this is another great example of HSBC leveraging our world-class FX eRisk infrastructure to help our clients achieve their business objectives.”

Mark Williamson, Global Head of FX Partnerships and Propositions at HSBC added: “We are constantly seeking out strategic partnerships and channels to embed our FX Services and build market-leading customer propositions.”

Angus Ross, Chief Revenue Officer, Banking as a Service (BaaS) at Finastra said: “The ability to integrate FX directly into corporate treasury platforms, as well as competitive pricing and liquidity into a single package will help reduce friction for regional banks and their customers and demonstrates a use case in which BaaS can really make an impact. HSBC is a leading market maker with deep liquidity in the FX market and shares Finastra’s beliefs around the significant potential of BaaS. We’re excited to be co-developing this solution to connect buyers and sellers of FX through a wholesale marketplace.”