Following this announcement, the collaboration marks a decisive shift from the traditional banking intermediaries, aiming to bypass the Swift network. Drawing on Dandelion’s direct-to-local connections, customers and users of the global banking group will be enabled to send funds to more than 100 destinations around the world, in 60 currencies.
In addition, both companies will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the local industries as well.
Throughout this collaboration, HSBC will leverage Dandelion’s API in order to establish direct connections with local payment rails, as well as focus on streamlining what was once a complex chain of transactions. At the same time, with Dandelion’s real-time monitoring and fraud detection working with HSBC’s in-house surveillance systems, the companies will optimise the security of customers and businesses alike.
In addition, HSBC’s improved Everyday Global Account now handles ten foreign currencies, rewarding frequent users with loyalty-based FX discounts. This development is expected to signal a significant departure from conventional international banking models, where several intermediaries drove up both costs and complexity.
The initiative has particular importance for markets where traditional banking infrastructure remains limited, as both HSBC and Dandelion also aim to prepare for incorporating additional currencies and payment endpoints, including digital wallets. The direct-to-local approach could also gain widespread adoption, as banks and financial institutions move to reduce their reliance on traditional correspondent banking relationships and partnerships.
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