As it grows bigger, the company begins to see increased complexity in its needs. According to Joseph Ma, Mobvista, with its China root and a globally distributed client base, requires financial services that are accessible across global locations. With digital DNA running through its veins, the company also sets higher expectations for its smart products. Its ongoing business expansion, growing client base and more diversified product offerings all contribute to more complex needs for financial services.
“Addressing the pain points and demands of individual companies with tailored lifecycle solutions is what HSBC has been doing.” According to Ma, banks need to keep a watchful eye on the varying needs of the businesses at different stages of development in order to step in and help out.
Such varying needs may include, among other things, FX settlement, capital for growth, debt financing vs equity financing at different stages, and M&A activities across the value chain.
Cao also revealed that since FX management involves dealing with the complexity of the laws and regulations of multiple countries, Internet start-ups working with a big global clientele need to create synergy with an able partner for risk control and compliance purposes. Effective cost control is equally important, as it relates to the convenience and timeliness of settlement. “The capability for sophisticated FX management with pinpoint accuracy is what we need to better serve our clients and stakeholders, ensure maximum return for our shareholders and minimise forex risks in a volatile market.”
In response, HSBC has launched a foray on multiple fronts to bring down each of the obstacles. For example, the batch processing of online payments, enabled by HBSC’s innovative digital banking solutions, helps address high volumes of cross-border settlement and provides additional features of real-time tracking of payments and trade transactions. In terms of FX services, HSBCnet enables real-time preview of FX quote for each payment, thereby empowering clients with significantly enhanced control over FX rates during settlement. Meanwhile it also allows query for spot and forward FX rates and online booking of rate in order to meet more sophisticated FX needs of corporate clients.
In addition, companies venturing overseas are bound to face more currency volatilities. In this regard, HSBC China is committed to working with its clients for currency risk management to drive more robust business growth by fostering a proper understanding of currency risk neutrality, performing a key role as a member on the China Foreign Exchange Committee and leveraging its global connectivity to help the clients execute need-based hedging strategies.
In April 2021, Mobvista announced its plan to acquire Reyun Data (“Reyun”), a third-party mobile measurement and marketing technology company, for a total consideration of over RMB 1.5 billion (in cash and stock).
HSBC also stood with Mobvista throughout this deal.