Finastra and HSBC collaborate to bring BaaS FX capability to mid-tier banks

By Joy Dumasia

Finastra and HSBC announced that they are working together to distribute HSBC’s FX services via Finastra’s FusionFabric.cloud platform under a Banking as a Service (BaaS) experience. This collaboration will take advantage of the best elements of modern API-driven connectivity with licensed institutions’ secure, regulated infrastructure.

The first phase of the rollout will provide indicative and executable FX rates to regional mid-tier banks via a plug-in to Finastra’s Fusion Kondor, a solution with low maintenance and ownership cost, backed by the liquidity and robust risk management capabilities of one of the world’s largest FX franchises.

Angus Ross, Chief Revenue Officer, Banking as a Service (BaaS) at Finastra, said: “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. We’re excited to be co-developing this solution to connect buyers and sellers of FX through a wholesale marketplace.”

Integrating HSBC FX services with mid-tier banks will allow participating banks to deliver a wide range of currencies to their customers through branch networks and other retail channels without requiring additional technology integration. It will also provide clients with highly automated FX pricing capabilities, allowing banks to process higher FX volumes and differentiate themselves while maintaining customer relationships. Corporate clients will benefit from increased transparency of pricing and market conditions, improved ease of execution, and simpler currency risk management.

Available in H2 2022, the initial rollout will focus on financial institutions in Asia Pacific (APAC), with other regions to follow soon after. It will also be made available to embedders who require direct access to FX liquidity and pricing.

Richard Anthony, HSBC’s Global Head of FX eRisk & Precious Metals, said: “We are delighted to be working with Finastra. As one of the world’s leading FX banks, this is another great example of HSBC leveraging our world-class FX eRisk infrastructure to help our clients achieve their business objectives.” 

Mark Williamson, Global Head of FX Partnerships and Propositions at HSBC, added: “We are constantly seeking out strategic partnerships and channels to embed our FX Services and build market-leading customer propositions.”

Recently, IBS Intelligence reported that Singapore mainboard listed Silverlake Axis Ltd has entered into a strategic partnership agreement with Finastra, a global provider of financial software applications and marketplaces.