Open banking start-up Bud signs three-year deal with HSBC
Bud, the open banking start-up, has signed a three-year global deal with HSBC giving the UK bank access to its open banking, API and data. HSBC is one of Bud’s main investors.
The deal will see a phased rollout of Bud’s technology, initially within the banking group’s First Direct brand. HSBC’s UK bank will follow suit later in 2020. The agreement also covers scope for implementation across other HSBC markets, and for access to Bud’s rent recognition and utility switching services.
It’s been an eventful for Bud in recent times. The firm laid off 20% of its staff this year despite landing a partnership with First Direct and raising $20 million led by HSBC and Goldman Sachs.
The start-up has worked with HSBC since last year
The start-up, which has worked with HSBC since last year, underwent a complete business restructure in September which saw it refocus on sales and product development. It is now opening its services to retailers, utility providers and insurance companies after seemingly finding the banking space too narrow a playing field.
Co-founder of Bud George Dunning says the new deal with HSBC will allow the start-up to hire more tech professionals and bulk out its product and commercial teams.
Read more: HSBC-backed fintech Bud looks beyond financial sector in re-focused product model
“Of course there’s a significant financial aspect but for me the real benefit is how it acts as a statement of intent,” says Dunning. “There’s a world class business trusting our tech and deploying it to their customers at scale. I don’t know of any other fintech in open banking that has achieved anything like this with a global bank.”
Fellow co-founder and CEO Ed Maslaveckas agrees, reiterating that the deal is “a real testament to the huge amount of work that has gone into delivering Bud’s platform to market”.
