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Successful innovation in business requires much more than just a good idea. Strategic planning and having the proper teams and technology are also key, but what might be the most important element is listening to what the client wants. Banks need to listen to specific client feedback to determine where to invest time and capital […]
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Microsoft posted increased revenue year over year in its fiscal second quarter driven by its commercial business, specifically Microsoft Cloud. WHY IT MATTERS: In the first half of fiscal 2023, more than 70% of revenue came from commercial business, and over 70% of the commercial business derived from Microsoft Cloud, Chief Financial Officer Amy Hood […]
Capital One reported higher technology-related expenses for the fourth quarter despite reducing its tech workforce as the company “continues to invest in its retail banking business,” Chief Executive Richard Fairbank said during Tuesday’s Q4 earnings call. WHY IT MATTERS: The $455 billion bank reported a 9% year-over-year increase in total non-interest expenses to $5 billion […]
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Grasshopper Bank is partnering with finance automation platform Ramp to provide virtual and physical corporate cards with a host of features to its business clients. The $606 million digital bank and fintech worked together over the last six months to provide the bank’s small- and medium-sized business clients with digital tools using Ramp’s automated platform, […]
Microsoft Corp. is investing $10 billion in OpenAI, whose artificial intelligence tool ChatGPT has lit up the internet since its introduction in November, amassing more than a million users within days and touching off a fresh debate over the role of AI in the workplace. The new support, building on $1 billion Microsoft poured into […]
HSBC USA’s Tom Halpin, head of global payments solutions in North America, is focused on listening to customer needs as the bank prioritizes digital-first engagement.
The $167 billion bank, owned by $2.9 trillion, London-based HSBC Holdings, is looking to fintechs, innovations from its global counterparts, and emerging digital technologies for inspiration, Halpin told Bank Automation News.
For example, in December the bank partnered with digital card fintech Extendto offer virtual card solutions and embedded payments to commercial customers, according to a previous Extend release.
Bank Automation News caught up with Halpin to discuss HSBC’s digital priorities for 2023, fintech partnerships and the advantages of being part of a global bank. What follows is an edited version of that conversation.
Bank Automation News: How does HSBC USA prioritize its digitization strategy?
Tom Halpin: One of our strategic pillars is HSBC Instant ꟷ developing real-time payment capabilities needed to intermediate in digital flows. Our Extend partners, with mobile, instant issuance of virtual cards, directly support this pillar.
As such, we focus on digital-first customer engagement, making our customers’ lives easier and more efficient. This allows us not only to look at the payment transaction itself, but also the entire payment journey that our customers go through. We identify key pain points for our customers and prioritize our efforts accordingly.
BAN: What is HSBC USA’s fintech partnership strategy?
TH: As part of our focus on a digital-first customer experience, we look to future-proofing the technology we roll out to our clients. For example, increasing the use of data to enrich the customer proposition. Virtual Cards, with rich custom data fields, meet both of these requirements. Our Extend partners will allow HSBC to deliver virtual cards to a broader segment of our clients with a simple, digital, intuitive experience. This allows our cards business to minimize friction in our clients’ payment experience across a multitude of payment categories. We want to be present in the payment ecosystems of our clients to minimize or remove any disruption to their day-to-day operations.
BAN: How does being part of HSBC Holdings help you stay up to date on new tech and automations?
TH: There are many benefits that we at HSBC USA derive from being part of a global bank. We leverage capabilities and innovations from across the world, not just Europe. This allows us to identify new opportunities as well as share best practices across regions, and therefore bring new innovations to U.S. clients. For example, in 2022 we entered into a global agreement with Coupa Pay, which allows us to work together in each market through a simple participation agreement, greatly streamlining the time to market.
Likewise, our U.S. cards business has been able to provide new innovations and ideas to our global partners. Examples include the use of straight through processing (STP) to improve the merchant experience with B2B commercial cards.
BAN: Which technologies are you excited for in 2023?
TH: Embedded finance: The way that customers engage with banks is changing, which is why we are evolving and innovating at pace. We want to be present in the payment ecosystems of our clients. A key example of this is the embedded banking services we launched last year with Oracle NetSuite.
Continued acceleration and adoption of real-time APIs: Creating a more secure and insightful business model. This allows HSBC to support new segments, propositions and distribution models with APIs enabling automation of implementation and servicing. This is especially true of HSBCnet, which gives clients a clear picture of all their global banking in one place, wherever and whenever they want it. We offer a comprehensive suite of flexible online financial solutions, all designed to help clients increase productivity and manage cash flow.
Advancement of Virtual Card payment experiences, which includes a more robust acceptance ecosystem. To that point, HSBC has been an early adopter of MasterCard Track, a payment ecosystem that connects all four parties — cardholder, issuer, merchant and merchant services provider — in the card transaction in a common ecosystem, automating both the card payment and reconciliation processes for all parties.
BAN: What is your favorite piece of leadership advice?
TH: For me, the best advice is listen to your customers. Our customers’ needs are constantly evolving, requiring a strong level of engagement and consultation to understand their business. Also, understand that, as a trusted advisor to our clients, we don’t have to do it all ourselves. The best way to fulfill our customer needs might be better suited through an industry partnership, such as our Extend partnership.
Ally Financial is looking to capitalize on recent layoffs of tech talent to grow its own digital platforms despite potential economic turbulence to come this year. WHY IT MATTERS: The $191 billion bank plans to survey the workers being laid off at tech-driven companies and see who available, as major tech companies such as Amazon, […]
Truist Financial closed its acquisition of finance company BankDirect Capital Finance in the fourth quarter of 2022. The deal for the finance company to operate under the bank’s Truist Insurance Holdings arm was announced Sept. 6, according to a Truist release. BankDirect brings life insurance, new team members and enhanced risk management solutions to Truist, […]
Huntington Bancshares is planning to accelerate its automation efforts using savings gained from shuttering 63 branches in 2022. WHY IT MATTERS: Huntington outlined during its August 2022 Investor Day some core tech initiatives, including automating and enhancing the customer experience. “To further accelerate the execution of these strategies and support increased efficiency, we will be […]
Truist Financial increased its non-interest expenses in the fourth quarter of 2022 as minimum wage increased and the bank invested in technology, acquisitions, revenue-generating business and call center staff. The $548 billion bank’s adjusted non-interest expenses grew 8% year over year to $3.4 billion, according to its Q4 earnings presentation. WHY IT MATTERS: Although expenses […]
Fifth Third Bank saw higher technology-related expenses during the fourth quarter as it continued to invest in “platform modernization,” including the launch of its new cloud-based mobile app, Chief Financial Officer Jamie Leonard said during today’s earnings call. WHY IT MATTERS: Fifth Third increased technology and communications spend 8% year over year to $111 million […]
Capital One Financial Corp. eliminated hundreds of technology positions this week, the result of the credit-card giant spending years investing in systems meant to improve its efficiency. More than 1,100 workers were affected, according to a person familiar with the matter who asked not to be identified discussing a private matter. Those employees have been […]
JPMorgan Chase & Co. and International Finance Corp. are leading a $27 million round of investment in KLYM, a data-driven fintech that focuses on providing working capital to small and midsize companies in Latin America. KLYM will use the capital to expand, with Brazil as the main priority in 2023, Diego Caicedo, co-founder and chief […]
The combination of today’s uncertain macroeconomic conditions and the Consumer Financial Protection Bureau’s new open banking rule coming this year has consumers wanting quick access to cash from their banks under the watchful eye of regulators. Consumers want the ability to move their data and accounts from bank to bank without risk, especially amid rising […]
Discover Financial Services’ Joe Mills, director of transformation strategy and automation, and Dan Ireland, senior manager of automation and businesses strategy, have joined Bank Automation Summit U.S. 2023 to speak on robotic process automation and automation operations.
View the full agenda for Bank Automation Summit U.S. 2023 here.
Mills will join the panel “Automation operations: Use cases for transformation” on Thursday, March 2, at 1:30 p.m. ET, to discuss how to tackle automation projects.
Ireland will discuss how to build better RPA bots using process mining and process discovery on the panel “New approaches and techniques in RPA” on Friday, March 3 at 9:05 a.m. ET.
In 2022, Discover Financial Services partnered with vendor management platform TYDEi to streamline and digitize payments in the health care industry, and launched its Advanced Analytics Resource Center to enhance technology and analytics investments, according to a Discover release.
The Summit takes place March 2-3 at the Westin Charlotte in Charlotte, N.C., and brings together U.S.-based industry experts to discuss banking automation and technology topics, including cloud modernization and automating real-time payment processes.
Learn more about the Bank Automation Summit U.S. 2023 here and register here.