HSBC is to use an SAP platform to streamline and automate the delivery of banking services to corporate banking clients.
SAP Netweaver will help HSBC standardise and ease integration with clients, as part of its wider strategy to promote transaction banking.
The platform will let corporate clients link into HSBC's worldwide banking network via a single entry point, simplifying communications for services such as account payables, account receivables and reconciliations.
HSBC customers will gain easier access to their banking information.
The solution will also provide better support for compliance initiatives, seamlessly integrate financial supply chains and drive efficient working capital management.
Marcus Treacher, HSBC head of electronic banking and e-commerce for global transaction banking, said, "SAP is a leading enterprise resource planning [ERP] solution provider, and with many of our clients worldwide already running on SAP, it was the natural choice for our business needs.
"By combining HSBC's banking services with enterprise resource planning automation in new, highly integrated ways, customers can look forward to a faster, richer and seamless banking experience with us, worldwide."
SAP Netweaver communicates transactions using the ISO 20022 XML format, providing a standard interface between corporate clients' ERP systems and the bank's back-office.
As well as handling tasks such as extraction, workflow, reconciliation and simultaneous connections from different customers at the corporate site, SAP provides a shared operational process and unifies multiple service gateways between the corporate client and the bank.
This creates a more robust and real-time workflow, with faster on-boarding and better control over liquidity for corporate clients. HSBC will also gain better support for compliance initiatives automated transaction tracking provides a traceable audit trail.
A recent report from Misys said most banks were moving towards transaction banking, but had encountered technology obstacles.