Banking and beyond: harnessing technology to redefine banking for business customers
- HSBC partners with fintech firms to embrace innovations that will reshape the commercial banking landscape
- The bank goes beyond traditional banking services to help businesses shift to a more sustainable growth model
What if a bank not only handled financial transactions, but also acted as a partner, connecting businesses and helping companies on their growth journey?
Imagine if it helped businesses consolidate payment transactions, streamline daily workflows or even expand their network in local and overseas markets, with all services being conveniently accessed through a mobile device.
This is not fiction, but fact: these services are exactly what HSBC is now offering its SME and business customers.
HSBC is building what it calls a “bank of the future” by investing in digital transformation. “We are already a digital bank, and we are investing US$2 billion in the next five years to turn into a ‘digital-first’ bank,” says Barry O’Byrne, chief executive officer of global commercial banking at HSBC.
The bank – the title sponsor of Hong Kong FinTech Week held earlier this month – is collaborating with fintechs to create innovative, holistic solutions. These business-focused initiatives are designed to redefine banking services so that they meet the changing priorities and needs of its business customers. So far, partnerships are in place with more than 100 fintech firms.
HSBC recognises the importance of seamless online banking, with 96 per cent of its commercial banking payments already being processed through digital channels, O’Byrne says.
This year, the bank has seen an increase of 125 per cent in HSBCnet mobile downloads globally, while in Hong Kong, 85 per cent of its commercial customers are already using digital channels for their day-to-day banking. This has led to an average of 2.4 million monthly logins to Business Internet Banking in Hong Kong.
“We are digitising at scale to deliver to our clients,” O’Byrne says. “We believe the future of banking is about combining great technology and great people. From our conversations with customers everywhere, it is clear technology sits at the heart of their plans. We are investing and innovating to go beyond banking, and that’s a journey we are on with our clients, colleagues and ecosystem partners to shape what finance could look like tomorrow.”
During FinTech Week, O’Byrne and other senior executives participated in discussions on a range of topics, including green technology and investing for a sustainable future; big-data opportunities; building billion-dollar ecosystems with fintech partners; and investments in the Greater Bay Area (GBA).
And to help SMEs tap into the huge market opportunities offered by the GBA, HSBC has created the GBA WeChat Mini Programme, a first-of-its-kind mobile platform to help small businesses with their cross-border banking needs.
Alongside banking services, such as real-time balance enquiries for both mainland and Hong Kong accounts, the programme also provides insights into new business opportunities, operational tips and the latest market trends in the GBA.
HSBC is continually looking to provide simpler and faster digital banking services to support SMEs and start-ups in their growth journeys and enhance their operational efficiency.
Meanwhile, big data presents significant opportunities for banks to further innovate. HSBC has been leveraging data to drive new solutions for SMEs, and the bank sees this as a turning point to enable easier access to financing.
HSBC’s investment in technology goes beyond offering digital banking support. It is also mobilising the transition to a more sustainable future, through financial support and investment in climate solutions. This interaction between green technology and finance is an emerging trend, according to Jonathan Drew, managing director for ESG solutions, global banking, HSBC. Speaking at FinTech Week, he said financial institutions are already contributing to the transition to a more sustainable future, but their role in supporting technological development would inevitably come with challenges.
“Digital change is already starting to create new markets for sustainable financial instruments,” Drew says. “There has to be new ways of thinking and learning if we’re going to be successful with the climate response, and the biggest one of these is knowing how to manage uncertainty.”
Fintech innovations are gaining momentum in the post-pandemic era, HSBC says, and the bank is collaborating with the wider ecosystem to accelerate research and development in fintech and its role in commerce in Hong Kong. This will support the ambitions of tech ventures while bringing new solutions to the bank’s customers. Working closely with fintechs and other financial ecosystem players is a key part of its own digital journey to innovation and open collaboration.
“It doesn’t stop here,” O’Byrne says. “We will continue to be at the forefront of driving conversations and connecting the fintech ecosystem to a world of opportunity.”