In addition to many other bulge bracket banks, HSBC and UBS are the latest to dedicate resources for developing and investing in the next big fintech startup.
HSBC has allocated up to $200 million for investment in tech start-ups with the aim of improving the bank’s financial technology, underscoring the growing interest from the financial sector in the fast-growing fintech area. ... the fund will invest globally, both in firms that operate in retail and capital markets financial services technology, two people familiar with the initiative said. Banks are taking a variety of approaches as they try to keep up with technologies that could radically change their business environment. Swiss lender UBS has over the past few months created a new system of internal working groups that focus on specific technology projects. These so-called “innovation spaces” have dedicated funds to finance their operations and will comprise individuals from both the IT and the business divisions of the bank. Oliver Bussmann, UBS group chief information officer, said: “Innovation is not an option for banks. Fostering innovation is essential to add value for clients and create a competitive advantage.”