HSBC Vice Chairman: Plan to Invest $200 Million in Blockchain and Other Fintech
of HSBC, the British global bank has established itself as a key player in the blockchain in banking space. As blockchain technology offers significant potential to reduce the time taken for processing banking documents. Of late, the international banking giant announced that it will enhance its investment in technology development, according to Yahoo Finance.
Peter Wong, vice chairman and chief executive officer of HSBC, disclosed that the banking group is about to invest $2.1 billion in technology development in the next three to five years in a forum. Wong added that $200 million out of $2.1 billion will be invested in Fintech development.
According to Wang, the bank has co-operated with technological partners from various counties, including China, the UK, and Australia.
In recent years, technologies have developed at a rapid speed in Hong Kong. Wong pointed out that, the local government plans to launch virtual banking and other related initiatives, and the banking industry also needs to make appropriate innovations in response.
For instance, Wong commented that blockchain technology could be applied in banking business including trade financing, foreign exchange, and fund management. As thus, bank personnel could be used more wisely and focus on customer service.
Wong also indicated that, in the previous days, banks used to cross-sell financial products, but now, they should learn to make use of data to sell products to target customers accurately.
In the meantime, banking data usage also faces regulatory challenges, including how to distinguish public and commercial data. Wong emphasized that HSBC will continue to invest vast resources to improve cybersecurity and customer data protection.
HSBC always eyeing cutting-edge technologies that may enhance effectiveness for their business in order to become more competitive among their rivals. It has participated in the blockchain-based trade finance platform named eTrade Connect that co-launched by HKMA and Chinese insurance giant Ping An on October 31.
Last month, HSBC has also invested $4 million into the New York-based blockchain startup Axoni with the aim to analyze how distributed ledger technology (DLT) can modernize capital markets infrastructure.
In the future, we may see HSBC carry out more blockchain applications as they are putting more efforts into it.