Kinetic, a mobile banking subsidiary of HSBC, has been formed to serve the needs of the UK business community.
HSBC Kinetic, which was developed with the help of over 3,000 small business owners, will allow SMEs to open savings and current accounts in minutes and efficiently manage business operations such as direct debits, standing orders, and future payments.
As HSBC's global head of digital business banking channels Nadya Hijazi and head of small business banking Peter McIntyre explained, the launch of this platform comes at a critical time for small business owners and self-employed people, whose numbers have risen sharply in recent months as a result of the economic downturn.
According to HSBC research, just about a third of UK-based SMEs are confidence in their capacity to keep track of their finances in real time. Finding time to handle their money and determining what steps to do as a result of what their finances are telling them are two of the most pressing concerns.
HSBC Kinetic goes a long way toward overcoming this problem, with over 5,000 users ranging from food delivery and technology enterprises to small stores and even medical groups.
The app's unique selling point, on the other hand, is that it is built on Google Cloud technology, which allows HSBC to leverage its existing infrastructure to quickly scale up the service if necessary and promptly execute any improvements based on client input.
HSBC Kinetic can be readily connected with other prominent financial and accounting software suppliers, such as Xero, QuickBooks, and Sage, thanks to APIs.
HSBC Kinetic can help struggling businesses maintain a healthy cash flow by providing a suite of useful in-app banking products, such as same-day overdrafts, credit cards, and streamlined access to the Bounce Back Loan Scheme, in addition to assisting SMEs with the practical challenges associated with cash management (BBLS).
"This function has been invaluable throughout the economic slump," says HSBC's McIntyre, "providing SMEs quick and easy access to the short-term funding needed to help tide them over."
The Kinetic app is part of HSBC's multibillion-dollar worldwide transformation program, which aims to digitalize essential customer journeys to improve user experience. "Since the Bounce Back Loan Scheme launched in May 2020, HSBC's UK commercial bank has authorized over £7 billion in loans – all through our existing digital banking channels," says Hijazi. HSBC's continued and persistent investment in establishing cutting-edge digital banking platforms, such as Kinetic, would not have allowed for this magnitude of lending."
Evidently, the epidemic has sparked a shift in how businesses – particularly SMEs – finance, and financial institutions such as HSBC are leading the charge to combat this tendency. Indeed, HSBC has seen a 40% increase in the number of consumers using its digital banking services since the outbreak began.
"We've also witnessed an increase in the number of clients who choose to use virtual assistant tools for support rather than calling customer service at a bank branch," Hijazi says. Clearly, the digital environment is becoming more and more important in how businesses are operated in the United Kingdom.
HSBC Kinetic is a mobile app that includes customized cash flow insights, automatically classified expenditure overviews, detailed account reports, and an in-app customer assistance tool. It is available for download on both iOS and Android.
HSBC has also promised to expand Kinetic to the Group's other significant geographies, including as Asia, and to offer small business loans and international payments through the app in the near future.