Corporates can put HSBC banking services on their own technology platforms through Oracle NetSuite’s latest software, as fintech and enterprise resource planning (ERP) comes together.
Using application programming interfaces (APIs), businesses will be able to embed HSBC banking services, such as international payments and expense management, on their own tech platforms.
The banking as a service will see the services built into NetSuite’s SuiteBanking software. Business users of the software will be able to pay bills, send invoices, get paid and gain full cash flow visibility from a single unified system. HSBC plans to expand its banking-as-a-service offering with plans to integrate its Global Wallet, which offers instant access to currencies.
Barry O’Byrne, CEO, global commercial banking at HSBC, said: “By combining new technologies with our global reach and deep transaction banking solutions expertise, we will be able to partner with our clients to offer business banking propositions to their customers – integrated into their platforms and with the backing of HSBC’s technology and international network.
“Embedding our solutions into our customers’ platforms is central to our strategy of supporting our clients’ growth across all regions, from Asia to the Americas. We envisage this to be the first alliance of many.”
Oracle NetSuite’s vice-president, Evan Goldberg, said the SuiteBanking software is the first step in bringing the worlds of ERP and fintech together.
“It will help our customers automate all of these processes in one single suite, while increasing visibility and control, so they can maintain healthy cash flow as they grow,” he said. “We are excited to work with HSBC, a leading international bank that is embracing fintech innovation, to help bring this to life for our customers.”
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In June, HSBC launched its API Developer Portal, giving developers access to a range of HSBC’s APIs, as well as a safe sandbox environment for testing. At the time, Nadya Hijazi, head of digital, global liquidity and cash management at HSBC, said APIs are the future of corporate-to-bank connectivity.
“By opening up our API suite to customers and developers, we’re enabling them to rapidly integrate our solutions into their own products,” he said. “Embedding our insights into customers’ own businesses will make them more resilient, and less dependent on the limitations of their own technology.”
Banks are increasingly seeking additional revenue streams through fintech services.
Challenger app-based bank Starling launched its banking as a service in the UK in 2018. After gaining 25 business customers, it has expanded the service into continental Europe. Starling APIs can be implemented with a few lines of code and give user businesses access to major payment systems such as Faster Payments, Sepa and Bacs.
Its banking-as-a-service customers include fintechs CurrencyCloud, Moneybox and Raisin UK.