HSBC & Finologee: Modernising bank connectivity through API integrations
On 1 December 2023, the ABBL “Fintech and Innovation Forum” featured an event on the topic of “Payments and Beyond: Modernising Bank Connectivity”. Nick Ashton, heading HSBC’s Global Payments Solutions in Luxembourg and Raoul Mulheims, Finologee’s CEO, spoke on the benefits of APIs.
Nick Ashton kicked off by explaining HSBC’s journey into digitalisation, highlighting the different types of APIs the bank is working on. These include APIs customised for partners’ specific needs, industry APIs mandated by regulations (like PSD2/Open Banking) and non-regulatory initiatives, such as SWIFT GPI. He stressed that treasury APIs are also being developed to help clients connect to HSBC in a new way, shifting from traditional methods to integrating systems such as ERP/Treasury Management via APIs.
On the latter, he outlined the HSBC Treasury API proposition, designed to refine cash management practices with its promise of real-time visibility into account balances and transactions, on-demand payment initiation and capabilities for tracking, traceability and multi-currency disbursements, as well as operational collection APIs which are currently live in Hong Kong.
Nick Ashton concluded the presentation by emphasising the role of the SWIFTgpi API in payment tracking. He pointed out the challenges faced by customers who have to contact bank employees to find out the status of their cross-border payments and who have to make an enormous – and above all manual – effort for the reconciliation. In this context, he underlined the importance of real-time transaction transparency covering all the way to intermediary and beneficiary banks and the easy integration with existing treasury (TMS) and enterprise resource management (ERP) systems to boost operational efficiency.
Nick Ashton, Country Head Luxembourg, HSBC Global Payments Solutions:
“The SWIFT GPI API for payment tracking significantly enhances operational effectiveness. This process simplifies access: a treasury or finance team member can effortlessly check payment statuses through the corporate TMS or ERP. Triggering SWIFT GPI API calls via the ERP or TMS enables HSBC to promptly retrieve and relay payment statuses back to clients in real-time. This streamlined process ensures swift and transparent transaction tracking seamlessly integrated into existing corporate systems.”
Raoul Mulheims presented FinologeeLYNKS, a comprehensive platform for centralising bank and account management for non-bank financial institutions. It integrates multiple channels and connectivity end-points, ensuring effortless interactions between both clients and banks while offering features like account aggregation, unlimited bank reach, workflow management and reporting. With its integration capabilities, LYNKS effortlessly connects with other company systems.
Raoul Mulheims, CEO & Co-Founder, Finologee: “LYNKS brings together tailored solutions for clients and partners, creating added value through versatile collaborations. Whether it’s data transformation, treasury or asset management, our integrations aim to meet diverse needs, fostering valuable relationships.”
In cooperation with banks, LYNKS offers end customers a multi-layered joint value proposition. Within this framework, the banks retain full responsibility and control over the banking service layer provided to end customers, which includes the services of corporate and institutional banks with worldwide reach. Connections are set up through APIs and other channels (SWIFT, EBICS, SFTP…), allowing access to client accounts and the exchange of data between LYNKS and banks.
The LYNKS platform serves as the technical and access layer for customers, providing key services such as account access, payments, reporting and the ability to integrate additional business value-added services such as data transformation or customised treasury functions according to specific customer preferences. SWIFT GPI tracking features can also be activated to additionally enrich client data and international cross-border payment processes.
Besides, the LYNKS platform will support users with account holder and account name validation, leveraging an implementation of IBAN-name verification features as mandated by the new European regulation for instant credit transfers and PSD3/PSR package.
In addition to its existing capabilities encompassing the GPI tracker, data transformation and risk management features, LYNKS is extending its functionality to facilitate bank-specific processes. An example would be to streamline the account opening process for SPVs by facilitating seamless sharing of required data with the bank.
Moreover, the advanced feature set of LYNKS would include facilitating cross-border payments which could streamline intricate banking operations but also enhance the efficiency and convenience for clients.
