HSBC partners with FinTech and asset managers for cloud-based data platform

Custody banks are seeing the value in collaborating with new service providers and FinTechs over data solutions.

By Joe Parsons

HSBC Securities Services has partnered with FinTech firm FINBOURNE, asset manager Fidelity International and hedge fund Altana Wealth to design a new cloud-based investment management platform.

The four organisations will collaborate to design a shared, cloud-based data utility that aims to reduce operating cost and improve the quality of information for in-house and client use.

The platform, named LUSID, is aimed at replacing existing in-house software and hardware, and achieve advanced standards of data handling for institutional clients.

“We are committed to exploring emerging technologies, and their potential to drive more innovation, efficiency and security in the services we offer,” said Cian Burke, global head of HSBC Securities Services.

“Shared, cloud-based platforms could have huge benefit in the custody space, and we are excited to be advising on this project with other industry leaders.”

It is the latest FinTech partnership for HSBC Securities Services, as custody banks continue to see the value in collaborating with new service providers over data solutions.

In October last year, HSBC and BNY Mellon signed up to fixed income FinTech platform Algomi to enhance liquidity in the bond market for their custody clients.

A recent report by McKinsey showed that of 50 FinTech firms surveyed, over half were providing products and solutions to custodians and asset servicers.

“Securities services incumbents should view FinTechs as partners rather than competitors. More than 70% of securities services-oriented FinTechs are developing products and services for incumbents, rather than targeting the industry’s end customers and striving to dis-intermediate incumbents,” the report said.