HONG KONG (Reuters) – In a first-of-its kind initiative, HSBC Holdings Plc, is supporting the launch of a technology start-up that aims to connect small-and medium-sized manufacturers, by the suppliers of the components in the different parts of the world, as well as a part of the market, banking system down.
The Hong Kong-based General, which is a wholly-owned subsidiary of one of Europe’s largest bank by assets, which began formal operations in the last week, and it is a part of HSBC Chief Executive, John Flint, is planning to invest $15-$17 billion in 2020 in the technology to support the growth of the economy.
“Navigating the global markets, small and medium-sized business, it is still a nightmare. And it’s a real pain point in the business-to-business-to-business (transactions),” says Vivek Ramachandran, chief executive of the General.
“So, if you have Facebook for your personal network, and LinkedIn is for your professional network, and General, it is to your business,” said Ramachandran, who previously worked in HSBC’s commercial banking unit in more than three years of age.
General, it is the first investment made by HSBC, a non-banking, technology, start-up, and can assist in the London head office lender, which makes most of its sales are in Asia, and gaining access to new customers for the services provided by the banking sector.
Banks have been boosting investments in technology, trade and transaction banking of the state of affairs with the financing of the trade, money management, and the facilitation of payments in the midst of ever-increasing competition and a shift in the cross-border supply chains.
Details of HSBC investments, in General, were not disclosed.
Ramachandran said the technology platform should in the first instance, leverage HSBC’s trade and bank-client network around the world, it would be to extend the coverage, the higher are the manufacturers and suppliers who are not on the bank’s existing customers.
General, the provision of tiny loans to some of its hong Kong-based small businesses for the financing of their purchases, and the launch of a full-fledged financing solutions and the credit, later, by a third party, ” he said.
“The idea is to create a platform where buyers and sellers come together as a team,” Ramachandran said. “You have to make connections, and then, after a period of time, you can access a wide range of solutions.
Reporting by Sumeet Chatterjee; Editing by Stephen Coates