HSBC enters the Banking-as-a-Service ring with Oracle tie-up

By Oliver Smith on Wednesday 20 October 2021

Digital Banking

“The first alliance of many.”

HSBC enters the Banking-as-a-Service ring with Oracle tie-up
Image source: Barry O’Byrne/HSBC.

Global banking giant HSBC last night announced its first foray into the world of Banking-as-a-Service (BaaS) via a partnership with US computing giant Oracle.

The partnership means that enterprise customers of Oracle’s NetSuite cloud business and accounting software can now tap into HSBC’s payments and business banking tech to send and receive money automatically.

For instance, an expense report could be automatically filed through NetSuite and then paid out via HSBC without any human involvement.

It’s the first time HSBC has entered the BaaS space, and the bank says its tie-up with Oracle is just the start. It already plans on adding access to its HSBC Global Wallet multi-currency account in the near future.

“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,” said Barry O’Byrne, HSBC’s CEO of global commercial banking.

While HSBC is starting with vast enterprise customers like Oracle NetSuite, which in turn has over 27,000 customers, the news will be a shot across the bow of the fintech BaaS community.

Thought Machine, ClearBank, Starling and Yobota, to name a few, are all building multi-million-pound businesses by enabling non-financial institutions to offer financial services.

Now Europe’s second-largest bank is entering the market, and clearly has an appetite for more partnerships.

“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,” added O’Byrne. 

“We envisage this to be the first alliance of many.”

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