HSBC and 12 other banks hope to improve banking services through fintech innovation

Rage Comment : HSBC and 12 other companies hope to use the Asia-Pacific Internet Technology Innovation Lab of Accenture Consulting Company in Hong Kong to review the technology of start-ups, so as to select suitable technologies, simplify banking processes, and allow banks to provide consumers with better and faster services. The cooperation between banks and financial technology companies is a good sign. Hong Kong financial institutions should shoulder the responsibility of initiating innovation and introducing new technologies to give banks in the Asia-Pacific region a new lease of life.

Translation: Nicole

Eight financial technology startups, including companies from Hong Kong, Japan, Singapore and Germany, are introducing innovative technologies to reinvent banks in Asia Pacific through projects backed by major institutions.

This year's presentation at Accenture's Asia Pacific Internet Technology Innovation Lab in Hong Kong reviewed a number of technologies, including an anti-fraud system using Chinese algorithms, a customer identity system based on an online ledger platform (i.e. blockchain), a predictive investment solution, and an e-wallet.

In a statement to the South China Morning Post, HSBC's chief operating officer for Asia Pacific, Raymond Cheng Siu-hong, said Hong Kong financial institutions should shoulder the responsibility of initiating innovation.

Raymond Cheng Siu-hong

Cheng said:

“The Lab has created a platform for us to work with startups that have innovative technology and resourceful people. We have validated many opportunities and tested some of these initiatives to simplify banking processes and enable banks to provide better and faster services to consumers.”

Launched in 2014, the lab is a financial technology accelerator set up by global consulting firm Accenture. Starting Monday, Accenture and its partner financial institutions will provide 12 days of mentoring to startups at Cyberport.

The partners are as follows:

HSBC, Bank of America Merrill Lynch, BNP Paribas, Commonwealth Bank of Australia, Credit Suisse, Generali, Goldman Sachs, JPMorgan Chase, Maybank, Morgan Stanley, Sun Life Financial Group and UBS.

Citigroup China, China Construction Bank (CCB), Macquarie Group, Nomura Securities Holdings, Standard Chartered Bank, Thai Commercial Bank, Societe Generale and Sumitomo Mitsui Financial Group have also joined.

Jon Allaway

Jon Allaway, senior executive director of financial services at Accenture, a global management consulting firm, said:

“Most financial institutions are struggling to find ways to increase efficiency, save costs, comply with regulatory requirements and enhance engagement with consumers. The startups showcased at this year’s Innovation Lab are demonstrating innovative technologies that can address these issues.”

This year’s shortlisted startups are as follows:

Lattice, Privé Managers, Hong Kong TNG Wallet, US ChartIQ, HedgeSPA, Singapore KYC-Chain, Japan Siork and Germany Seerene.

Alex Kong, founder and CEO of TNG Wallet, noted:

“The fact that a large number of banks are interested in working with fintech companies is a good sign”.

Charles Wong

Charles Wong, CEO of Privé, said:

“Startups are best positioned to quickly improve banking services and generate more revenue for banks.”

At the end of the project, five lab companies will be selected and their projects will be presented to potential investors. Accenture predicts that the amount of fintech investment in the Asia-Pacific region this year will be twice that of last year's $4.26 billion, due to a significant increase in transaction volume in mainland China.

Alibaba-affiliated Ant Financial Services raised $4.5 billion in a private equity funding round in April.