The first phase of the roll out will provide both indicative and executable FX rates to regional mid-tier banks via a plug-in to Finastra's Fusion Kondor, backed by the liquidity and risk management capabilities of HSBC's FX.
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.
It will also provide clients with automated FX pricing capabilities, allowing banks to process higher FX volumes while maintaining their own customer relationships. Corporate clients will benefit from increased transparency of pricing and market conditions, improved execution, and simpler currency risk management.
Available in H2 2022, the initial roll out will focus on financial institutions in Asia Pacific 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."
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."
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