Compared to previous times, banks increasingly view fintech companies more as collaborators rather than competitors, according to HSBC’s Luanne Lim.
In the new era of financial services, there is increasing customer demand for cutting edge financial technology. This applies not only to emerging fintech companies but also to traditional financial institutions, which has led to new opportunities. According to HSBC’s Hong Kong CEO Luanne Lim, there was more competition compared to collaboration with fintechs 10 years ago.
«[Today], I think that has totally turned around. I think there’s massively more collaboration,» Lim said during the Hong Kong FinTech Week 2024.
Three Angles
Lim highlighted three angles for collaboration between HSBC and the fintech industry.
Firstly, the bank supports fintech firms’ financial needs via solutions like venture debt or equity warrants. It also supports financing through its $3 billion New Economy Fund and the HSBC Innovation Bank following the purchase of Silicon Valley Bank. Secondly, the bank leverages fintech startups’ services to help improve its own offering. Thirdly, HSBC is also an investor of fintech firms.
Prioritizing Tech
As proof of the growing importance of technology, Lim noted that HSBC’s chief information officer and the tech function report directly to the bank’s CEO for the first time ever, following the recent restructuring. She also noted that focus would be placed not only on frontier technology but also on basic infrastructure like core platforms and operational resilience.
«We are [experiencing] the most rapid pace of technological advancement in history,» Lim added.
