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HSBC & Finastra team up to bring BaaS FX services to mid-tier banks

HSBC & Finastra team up to bring BaaS FX services to mid-tier banks

UK-based financial software firm, Finastra, and baking and financial services company, HSBC, have reportedly announced a new partnership that aims to distribute HSBC's FX services through Finastra's ‘’ platform as part of a Banking as a Service (BaaS) solution.

As per reports, the partnership will leverage the best features of modern API-driven connectivity through the regulated, secure infrastructure of licensed institutions.

The initial phase of the launch will give local mid-tier banking institutions both executable and indicative FX rates via a plug-in to Fusion Kondor, an innovative Finastra solution with low ownership and maintenance cost, supported by the liquidity and strong risk management abilities of one of the biggest FX franchises in the world.

Integrating the FX services of HSBC with mid-tier banks would give participating banks the ability to offer a wide selection of currencies to their clients via branch networks as well as other retail channels, which will not require any additional technology integration.

Furthermore, it would give customers access to highly automated FX pricing abilities, enabling banks to process greater FX volumes and stand out from the competition while still upholding their own relations with customers. Corporate clients would greatly benefit from enhanced execution ease, elevated transparency of pricing as well as market conditions, and a more simplified currency risk management.

The first rollout, which will begin in the second half of this year, will concentrate on financial institutions in the Asia Pacific (APAC), with other regions following close behind. Moreover, the service would also be made available to embedders that require a direct access to FX liquidity as well as pricing.

Richard Anthony, global head of FX eRisk & Precious Metals at HSBC, stated that the firm is thrilled to work alongside Finastra. The collaboration is another excellent example of how HSBC uses its industry-leading FX eRisk infrastructure to help clients reach their business goals.

Angus Ross, Finastra's chief revenue officer for banking as a service (BaaS), stated that integrating FX straight into corporate treasury platforms, along with competitive pricing and liquidity in one package will help eliminate friction for local banks and clients and shows a use case scenario in which BaaS can prove impactful.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.