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

Rick Steves

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.

Direct access to FX liquidity and pricing

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.”

  • Read this next

    Digital Assets

    Kraken launches institutional arm

    “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”

    Fintech

    Centroid integrates with brokerage solutions provider GTN

    “We are thrilled to integrate GTN into Centroid Bridge, our multi-asset connectivity bridging engine. This integration allows our clients to gain access to the wide range of multi-asset products offered by GTN.”

    Podcasts, Women of the Industry

    FF Podcast delves into the rise of prop trading as Brokeree releases Prop Pulse

    In the latest FinanceFeeds Podcast, Tatiana Pilipenko discusses Prop Pulse, Brokeree Solutions’ platform for prop firms and retail brokers aiming to delve into prop trading. Offering a flat fee structure, Prop Pulse emerges as a scalable solution in an era where successful traders increasingly prefer prop firms over traditional retail brokers.

    Inside View

    Scalping or day trading?

    Among the many popular trading styles with both beginners and experienced traders are scalping, which allows you to extract small portions of profit from each price movement, and day trading, which aims to trade over a single day. In this article, you will learn what scalping and day trading are and their differences and peculiarities. Ultimately, you will learn what to look for to understand which trading style is right for you.

    Crypto Insider

    Unveiling Plasma Next: INTMAX’s Solution to Scale Ethereum with Stateless Layer

     INTMAX has launched Plasma Next on the mainnet α, a groundbreaking Layer 2 zkRollup, revealed by co-founder Leona Hioki at ETH Denver. This innovation offers scalability with constant costs per block, merging Plasma’s scalability goals with zkRollups’ security.

    Fintech

    Nuam selects Vermiculus for clearing system in Chile, Colombia, and Peru

    “We are proud to deliver a system that plays an integral role in the core of this historical merger, empowering one of Latin America’s most crucial markets with VeriClear’s state-of-the-art technology, together with our deep market expertise.”

    Retail FX

    Moomoo launches super app in Malaysia

    “As an investment platform connecting 21 million retail investors globally, we envision collaborating with exchanges, regulatory bodies, and partners in the visible future to become the gateway, connecting Malaysia’s investment products to global capital and investors.”

    Executive Moves

    FXPA elects Joe Hoffman as new Chair in its 10th anniversary

    “The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of a FXPA. Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”

    Market News

    Eurozone Fights Stagnation Whilst Stock Indices Rally

    European stock markets are defying economic gloom as they continue to soar to all-time highs, showcasing resilience amidst broader economic challenges.

    <