HSBC targets open banking via fintech partnership
(20 October 2017 – Europe) HSBC UK and its online banking subsidiary, First Direct, have partnered with a fintech firm to provide customers with an integrated selection of financial services products and tools from across the market.
First Direct and startup Bud will trial the business model with customers and non-customers. By enabling a link between accounts from different banks securely, the service will provide customers with a view of their finances, and a range of tools designed to meet their financial goals.
The trial is part of HSBC UK’s open banking strategy and over the coming months opportunities will be evaluated across its different brands.
“The First Direct trial and the launch of HSBC Beta allows us to test, learn and develop in a live environment, and then deploy the new technologies at scale,” said Raman Bhatia, head of digital, UK and Europe at HSBC UK.
The project will initially support 2,000 First Direct customers and around 4,000 non-customers, running for six months from December 2017. This follows on from the HSBC Beta, which also uses algorithms – Market+ – to identify when it’s safe to spend through “nudges and auto rules”.
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