HSBC Insurance (Asia-Pacific) Holdings has announced the launch of its new fintech arm in the Lingang New Area of the Shanghai Free Trade Zone, as reported by The Paper on September 15. The unit will primarily provide technology innovation solutions for mobile financial planning services of financial institutions located in the Mainland, in addition, to focus on R&D of personalized financial planning tools. The fintech arm will also assist with the completion of client data integration and the provision of data-based services. HSBC Insurance chairman Bryce Johns stated that the new subsidiary would help the group to integrate Chinese financial innovations with its advanced international experience to further open up the mainland economy and boost growth.
The move comes as part of HSBC’s [HSBC:US] commitment to increase investment in the mainland market and fintech sector. In July, the British bank announced that it would invest to expand its wealth management and insurance business in China despite rising geopolitical tensions. The new fintech company will focus on serving clients in Shanghai and Guangzhou. Later in August, HSBC stated that it would hire between 2,000 and 3,000 wealth planners in China over the next four years as part of its Asia expansion strategy.