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SVB UK rebranded as HSBC Innovation Bank - Industry roundup: 12 June

The carbon removal issue in green finance

In the latest issue of SEB’s The Green Bond report, the bank’s experts conclude that the investment gap between clean and fossil energy is widening while the electrification of energy users is spreading, supporting their expectation that world fossil fuel consumption will peak in 2023. That puts international climate targets within reach, though carbon removal is now unavoidable to limit global warming to below 2 degrees, according to the IPCC. The report contains contributions from leaders in the nascent market for carbon removals used to meet corporate net-zero targets.

China still has a firm grip on the lead in the energy transition, but there are now early signs that investment is picking up also in the West. The first quarter of 2023 thus saw a 50% jump in renewable energy investment in the EMEA region, reaching the highest level in three years. Meanwhile, more than US$150bn in domestic utility-scale clean energy investments have been announced during the first eight months since the US Inflation Reduction Act was passed in August last year.

“China still leads, but a surge in Western clean-energy investment is underway and several energy-using sectors are close to tipping points,” said Thomas Thygesen, Head of Research, Climate & Sustainable Finance at SEB. 

With electrification spreading to commercial vehicles and other parts of the transportation system and strong policy support for the Western economies to play catch-up, he still expects global clean energy investment to double by 2025 and again by 2030. 

“This means we are very close to a peak in global fossil energy consumption and still have a realistic chance to complete the transition by 2050,” Thygesen added.

The report also features an update on the sustainable finance market. The market for sustainable bonds and loans continues to drift lower. The first four months of 2023 saw sustainable debt issuance decline to US$450bn, down from US$543bn in the same period last year. Developed market flows into SRI/ESG-labelled funds for bonds and equities have also levelled off over the past 18 months after posting exponential growth in the preceding years.

Trovata’s multi-bank API integration available to SAP and Oracle customers

Trovata, a bank API and cash management provider, has announced its expansion into the large corporate global treasury market, focusing on end-to-end integrations with enterprise ERP systems. A statement from Trovata names SAP and Oracle as two of these systems.

The firm says that this initiative takes the company into upstream markets by offering various new integrated platform services for large corporate customers. 

As the digital transformation in finance and banking continues gaining momentum, Trovata says it is expanding its services to meet market demand and support large corporate customers. These new services include automated feeds of corporate multibank balances and transactions; API-based, direct-to-bank bulk payment processing; and automated cash forecasting using open payables and receivables.


SVB UK rebranded as HSBC Innovation Bank

HSBC has renamed its recent acquisition, Silicon Valley Bank UK (SVB UK), to HSBC Innovation Bank. It will combine this with innovation teams to create a banking proposition called HSBC Innovation Banking. In a statement, the bank said it is combining the expertise of the former SVB UK with our international strength to enable businesses focused on innovation to compete globally.

HSBC Innovation Banking is a banking proposition for businesses in “cutting-edge” sectors, such as tech and life sciences, and their investors. The new proposition aims to help high-growth start-ups to navigate the challenges of growing across borders.

HSBC Innovation Banking creates a network of specialist expertise and capabilities, combining the financial services of SVB UK with newly assembled HSBC innovation teams in the US, Israel and Hong Kong to support clients’ global growth goals.

The proposition aims to support a range of businesses, from early-stage growth ones to late-stage public and private corporates and connect them with our global capabilities, including investment banking, private banking and asset management services.

HSBC Innovation Banking UK has over 650 employees, including teams covering Denmark and Sweden. In the US, an innovation team of more than 40 has been assembled across the Bay Area, Boston and New York City, and the bank is continuing to recruit new bankers in Tel Aviv and Hong Kong.


Rabobank and in3 target responsible BNPL B2B payments

Rabobank and in3 have launched a joint payment method called in3 Business. The Instalment Payment Solution (IPS) allows business purchases to be paid in three instalments without additional costs or interest for the buyer, the pair claim.

An online check determines whether the transaction is accepted during the purchase process. The seller is guaranteed fast payment of the entire order amount. The in3 Business option can be chosen as an integrated e-commerce payment option via payment service providers. It will also be available on invoices via a payment link or QR code.

The press release accompanying this news also states that Allianz Trade has a place in this ecosystem as both an insurer and a contributor to the credit engine.

The first entrepreneurs are now using in3 Business and can offer the payment option through payment services providers Pay or Mail to Pay. In the upcoming period, in3 Business will be made further available in the Dutch market.


Worldpay and Volt bring open banking to Merchants

Worldpay and Volt have announced a collaboration to allow merchants to take payment through open banking from consumers. The adoption of open banking technology is continuing to grow worldwide, driving account-to-account (A2A) payments use among consumers. Findings from Worldpay's 2023 Global Payments Report reveal that in just 12 months, the value of payments using A2A capabilities increased 13% globally, from US$463bn in 2021 to US$525bn in 2022. 

Alongside giving merchants’ customers more choice of seamless payments, the two firms claim this collaboration also brings a host of benefits for merchants by potentially reducing the cost of payment acceptance while offering a near-instant settlement of funds, thereby boosting their cash flow. As greater collaboration and interoperability between real-time payment rails are explored, there should naturally be a growth in opportunities to use A2A payments for cross-border commerce, which should further benefit merchants with global ambitions.

“Real-time account-to-account payments are experiencing hockey-stick growth around the world,” said Tom Greenwood, CEO and Founder of Volt. “This partnership will help merchants capitalise on that growth by providing them with a standardised, scalable solution that improves user experience and drives conversion.”

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