What happened: British Bank HSBC has finally announced more details about its new embedded finance joint venture with Tradeshift (Paypers). To put simply, HSBC adds its payment, trade, and financing capabilities, and Tradeshift adds its AP automation software. Companies that integrate the solution of the new joint venture, which is named Semfi, can leverage both capabilities from one source. The newly formed company will likely focus on Tradeshift’s existing customers first before expanding its reach.
What else you need to know: The launch announcement was already expected for the first half of 2024. Both companies announced the joint venture already in 2023 (Fintech Futures) when it shared initial details about the leadership and equity structure (75% HSBC and 25% Tradeshift).
My comment: I am certain that more and more banks will look for such partnerships, especially with a focus on SMEs and lending. HSBC has been pretty active in the embedded finance space but also shut down promising product launches quickly. On another note, HSBC has decided to write off its investment in Monese (Fintech Futures). Monese started as an immigrant focused banking product but also launched a core banking offering.
