HSBC and Oracle NetSuite, one of the leading cloud enterprise resource planning (ERP) systems are working together to provide banking-as-a-service (BaaS).
NetSuite customers will be able to automate accounts payable and receivable, and reconciliation processes, making it fast and simple to pay bills, send invoices, get paid, and gain full cash flow visibility, all from within a unified system. HSBC plans to expand its BaaS offering solutions including HSBC global wallet, which is a multi-currency digital wallet for international payments.
Enabling the customers to provide business banking services through their platforms
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 provide business banking propositions to their customers that is integrated into their platforms on the back 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,” he added.
With this new partnership, NetSuite will become the first major ERP suite with natively integrated banking solutions.
Evan Goldberg, executive vice president at Oracle NetSuite said, “SuiteBanking 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. 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”.
HSBC’s BaaS feature will utilise the bank’s application programming interfaces (APIs) to embed its solutions in clients’ own platforms. HSBC launched its API developer portal in June this year, providing developers with easy access to a range of HSBC’s API solutions, and a safe sandbox environment for testing.
Financial institutions such as Thought Machine, ClearBank, Starling, and Yobota are building various businesses to enable different non-financial institutions to provide financial services.
HSBC, which is Europe’s second-largest bank is entering the market to acquire more firms and build new partnerships. The bank is working to reduce fraud risks by developing a better and more thorough authentication of customer payments in an era when almost three in four banks, businesses, and payment providers were burned by payment scams that target checks, wire transfers, and digital payments.