Finastra and HSBC Bring FX BaaS to Mid-Tier Banks In APAC


Finastra is to distribute HSBC‘s foreign exchange (FX) services via its own FusionFabric.cloud platform under a banking-as-a-service (BaaS) experience; delivered initially to mid-tier banks in the Asia Pacific (APAC).

The FX BaaS will allow participating banks to process higher FX volumes, and differentiate themselves with various currency offerings while maintaining their own customer relationships. ‘Corporate clients will benefit from increased transparency of pricing and market conditions, improved ease of execution, and simpler currency risk management,’ the official announcement claimed.

The first phase of the rollout will provide both indicative and executable FX rates to regional mid-tier banks via a plug-in to Finastra’s treasury trading system Fusion Kondor, a solution that allegedly incurs both low maintenance and ownership cost, backed by liquidity and risk management capabilities.

Angus Ross

“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,” explains Angus Ross, chief revenue officer BaaS at Finastra.

The collaboration between the two entities will seek to take advantage of the best elements of modern API-driven connectivity with licensed institutions’ secure, regulated infrastructure.

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 any additional technology integration.

Available from H2 2022, the initial roll out will focus on financial institutions in the 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.

“HSBC is a leading market maker with deep liquidity in the FX market and shares Finastra’s beliefs around the significant potential of BaaS,” continues Ross. “We’re excited to be co-developing this solution to connect buyers and sellers of FX through a wholesale marketplace.”



Image and article originally from thefintechtimes.com. Read the original article here.