By John Reynolds on 11th December 2019
Deal with give HSBC access to Bud's Open Banking, API and data.
Bud has inked a three-year global deal with HSBC, which will give the High Street bank access to Bud's Open Banking, API and data.
Bud, which aids banks in connecting their apps and data to fintechs and financial services companies, has worked with HSBC since 2018.
The deal will see a phased rollout of Bud's technology, initially within HSBC's challenger first direct brand, then HSBC itself later in 2020.
The agreement covers scope for HSBC to use Bud's technology in other global markets, as well as the bank to use Bud's switching service.
Dunning explained how Bud’s technology will help HSBC.
He said: "Before you can build engaging tools that use transaction data you have to have clarity around the data - that starts with enrichment.”
“Accurate categorisation forms the basis of future services, so will be one of the first services rolled out to customers under the new deal."
Bud, a four-year-old fintech, previously worked with HSBC developing an app that lets consumers see account information from all of their providers, as well as offering product suggestions, including from third parties, and money management tips.
Dunning said the deal with HSBC was not exclusive, and did not prevent Bud working with rival banks in other markets.
Dunning said Bud was staffing up on the back of its work with HSBC, hiring tech professionals, as well as beefing up its product and commercial teams.
The co-founder said the deal with HSBC was more than being financially rewarding for Bud.
He said: "Of course there's a significant financial aspect but for me the real benefit is how it acts as a statement of intent.”
“There's a world class business trusting our tech and deploying it to their customers at scale. I don't know of any other fintech in open banking that has achieved anything like this with a global bank."
Josh Bottomley, HSBC Global Head of Digital, Retail Banking & Wealth Management, said: “By integrating Bud’s technology we will be able to make HSBC’s digital banking even more helpful for our customers.”
“Its aggregation, marketplace and AI services will provide the intelligence to underpin a host of exciting new customer features that we will be exploring over the course of 2020 and beyond.”
Ed Maslaveckas, CEO and co-founder, Bud, said: “Both the scale and duration of this deal demonstrate the benefit of Bud’s technology to one of the largest banks in the world. It’s a real testament to the huge amount of work that has gone into delivering Bud’s platform to market.
“We set out four years ago to help people use their data to simplify their relationship with money and achieve their ambitions. Our work at scale with banks like HSBC is absolutely fundamental in achieving that.”