The next era of banking is embedded, intelligent and invisible

Over the past decade, digital banking has evolved rapidly. Mobile money, digital wallets, and peer-to-peer payments have become mainstream – a trend accelerated by the pandemic as banks enhanced online services and scaled back physical branches.

Today, digital banking is a core component of banking business models. Many institutions now offer embedded finance solutions, seamlessly integrating financial services into everyday platforms like e-commerce platforms and lifestyle apps.

In emerging markets, ‘super-apps’ — which span everything from ride-hailing to food delivery — have deeply embedded payments and credit solutions, made possible by banking partners and providing financial access for billions of people.¹

In developed markets, brands with strong consumer reach, both physical and digital, are also embedding financial services. Walmart’s USD300 million stake in One Financial has enabled it to offer quasi-banking services like “buy now, pay later” loans to its 240 million weekly shoppers.²

By partnering with non-bank platforms, banks can meet customers where they are — transforming banking from a standalone destination into an integrated, invisible service woven into daily life. These Banking as a Service solutions and API-based models are enabling new revenue streams and customer access points for banks and their clients.

Regulators are supporting this shift across markets: the UK is advancing open finance through API mandates, while Hong Kong and the Middle East have issued virtual bank licences, intensifying competition.³ Hong Kong has also introduced a stablecoin licensing regime this year (following a similar bill in the US) that could potentially accelerate the velocity of digital money.⁴

With 659 million cryptocurrency owners globally by the end of 2024, stablecoins have the potential to provide a more stable bridge between fiat and digital assets, and have the scope to transform the payments industry with cheaper and faster transfers.⁵

HSBC is aligning with these trends by combining global scale with digital innovation. HSBC’s Omni Collect enables merchants worldwide to accept multiple payment options — from cards to QR codes and e-wallets — through a single platform. Lalamove, a Hong Kong-based on-demand delivery platform, used Omni Collect to digitise its collections as part of a digital transformation of its customer experience and operations that also deployed other HSBC solutions such as PayMe API, Corporate Card and HSBCnet.⁶

For companies with global e-commerce flows, HSBC’s Merchant Box (powered by HSBC Global Wallet) offers a one-stop solution.⁷ Healthcare brand RENPHO, selling across 30 markets in more than 10 currencies, now collects proceeds directly from Amazon without third-party intermediaries, reducing counterparty and fraud risk.

This enables a frictionless flow of commerce, with funds flowing into HSBC accounts in real time. The process eliminates the need for multiple local currency accounts, providing clients with immediate access to working capital.

Furthermore, HSBC has embedded its banking functionalities within non-bank platforms in the travel sector. A partnership with Japan Airlines (JAL) has improved the booking experience for the flagship carrier’s fast-growing customer base. JAL integrated HSBC’s Multi-Currency Pricing into its booking system, allowing customers to view and pay fares in their local currency while JAL receives payments in an improved and more convenient way, without adding FX risk.

Behind the scenes, HSBC is also pioneering next-generation infrastructure that will accelerate embedded banking. In 2025, HSBC launched Hong Kong’s first bank-led, blockchain-based settlement service, which uses Tokenised Deposits.⁸ The initiative built on co-development work with Ant International, which tested the technology with HSBC in 2023 and is the first to have adopted the new service.⁹

The use of tokenised deposits, a form of digital money, could soon make large volume cross-border transactions much faster, more transparent, and cost-efficient — redefining what is possible in international payments.

At HSBC, we are also developing a comprehensive distributed ledger technology platform to support clients on their digital assets journey. HSBC Orion allows clients to invest or issue digitally native bonds – covering the end-to-end asset lifecycle from issuance to redemption.¹⁰ Similarly, HSBC Gold Token allows clients to benefit from fractional ownership of physical gold in a simple, cost-effective way.¹¹

Looking ahead, generative AI, combined with data and cloud, will further reshape banking.¹² AI-powered agents could manage most interactions, replacing complex app journeys or website visits with simple conversations. Some banks are even testing AI avatars that can process loan applications for customers in an experience that feels like being on a Zoom call.¹³

HSBC is positioning itself to be a leader and a trusted partner by delivering the next generation of customer-centric solutions. By leveraging its global network and digital platform solutions, HSBC will continue to help businesses and individuals simplify their operations and embed financial services into the ecosystems where customers live and work.