HSBC is rolling out a Banking as a Service (BaaS) platform that will “enable customers to create and provide business banking services through their own platforms,” with a little help from cloud ERP system Oracle NetSuite, according to a Tuesday (Oct. 19) announcement.
HSBC and Oracle NetSuite’s combined solution will embed international payments and expense management services into NetSuite’s new SuiteBanking solution to allow NetSuite customers to automate accounts payable, accounts receivable and reconciliation processes, meaning it’ll be easier to pay bills, send invoices, get paid and see a full cash flow picture in one place.
HSBC is also planning to integrate BaaS into HSBC Global Wallet, its multi-currency digital wallet for making and receiving international payments.
“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,” HSBC Chief Executive Officer, Global Commercial Banking Barry O’Byrne said in the announcement.
“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,” he said. “We envisage this to be the first alliance of many.”
Evan Goldberg, executive vice president of Oracle NetSuite, sees SuiteBanking as “the first step in bringing the worlds of ERP and fintech together,” he said in the joint announcement.
HSBC’s BaaS platform will embed its solution in clients’ platforms using the bank’s Application Programming Interfaces (APIs). HSBC launched its API Developer Portal in June.
“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,” said Goldberg. “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.”
Related: HSBC on Authenticating Customer Payments to Reduce Fraud
HSBC is also working to reduce fraud through better and more thorough authentication of customer payments in an era when almost three in four banks, business and payment providers were burned by some kind of payment scam last year, targeting checks, wire transfers and even digital payments.
Payment fraud losses are expected to total $206 billion over the next four years, with firms expected to spend $11.8 billion annually on fraud prevention by 2025.
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