Finastra and HSBC Launch FX Banking-as-a-Service
Posted by Colin Lambert. Last updated: July 15, 2022
Finastra has unveiled plans to distribute HSBC’s FX services its FusionFabric.cloud platform under a banking-as-a-service (BaaS) experience.
The firms say the collaboration will take advantage of the best elements of modern API-driven connectivity with licensed institutions’ secure, regulated infrastructure and will initially provide both indicative and executable FX rates to regional mid-tier banks via a plug-in to Finastra’s Fusion Kondor.
The service will allow participating banks to deliver a wide range of currencies to their customers through branch networks and other retail channels, without requiring any additional technology integration. It will also provide clients with automated FX pricing capabilities, allowing banks to process higher FX volumes, and to differentiate themselves while maintaining their own customer relationships, the firms say. Corporate clients will benefit from increased transparency of pricing and market conditions, improved ease of execution, and simpler currency risk management, they add.
Available in H2 2022, the initial roll out will focus on financial institutions in 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.
“As one of the world’s leading FX banks this is another great example of HSBC leveraging our world-class FX e-risk infrastructure to help our clients achieve their business objectives,” says Richard Anthony, HSBC’s global head of FX e-risk and precious metals.
Mark Williamson, global head of FX partnerships and propositions at HSBC adds, “We are constantly seeking out strategic partnerships and channels to embed our FX services and build market-leading customer propositions.”
Meanwhile, Angus Ross, chief revenue officer, BaaS at Finastra says, “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,” he continues. “We’re excited to be co-developing this solution to connect buyers and sellers of FX through a wholesale marketplace.”