HSBC in tech push as boss Noel Quinn suggests acquisitions spree
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HSBC will launch a new joint venture with B2B fintech firm Tradeshift as boss Noel Quinn said more bolt-on acquisitions could be in the offing to develop its appeal to tech firms.
As part of the new venture, announced this morning, HSBC will invest $35m into Tradeshift. The investment will be made in two parts and forms part of a funding round that is expected to reach $70m.
The new, jointly-owned business will focus on the development of embedded finance and financial services apps in areas such as payments, trade and e-commerce.
Barry O’Byrne, chief executive of global commercial banking said the deal “supports our strategy of being a digital first bank, which includes our commitment to partnering with fintechs and embedding our solutions into the platforms of others”.
HSBC’s investment comes shortly after the bank’s emergency acquisition of Silicon Valley Bank UK (SVB UK) for £1 back in March. SVB UK, which has been renamed HSBC Innovation Banking, focuses on tech startups.
Speaking after the bank’s results today, chief executive Noel Quinn said “there’s been no unexpected surprises” in the incorporation of the bank.
In fact he said there have been more new customers asking to open a bank account in the three months following the acquisition than the three months before.
Quinn said the acquisition has enabled HSBC to “open up and recruit new teams in Hong Kong, in the US and Israel”. It has hired over 40 bankers who used to work at SVB in an attempt to push into the fast growing technology and healthcare sectors.
“What we’re trying to do is help those businesses in the tech and life science sectors to grow, expand and serve them through their lifecycle from the startup stage through to the maturity stage,” he said.
Quinn suggested there was potentially more to come, saying “we’re open minded to doing further bolt on acquisitions if it can bring products and capability to those strategic ambitions”.