British banking major HSBC has set up a fintech subsidiary in Shanghai to scale up its business in mainland China.

HSBC Fintech Services (Shanghai) Company Limited is said to be the first fintech subsidiary opened by a foreign financial institution in China.

Situated in the Lingang area of the Shanghai Free Trade Zone, the venture will offer centralised technology and data services to HSBC Pinnacle Venture.

HSBC Pinnacle Venture is the banking group’s mobile financial planning service in China.

Through this service, HSBC targets clients outside the branch network, primarily for its private banking business in China.

HSBC Bank (China) president and CEO Mark Wang commented: “Fintech has been developing quickly in mainland China in the past few years which has enhanced its overall financial services capabilities.

“We believe technology can help provide better customer services, which can spur growth of the real economy.”

“The opening of HSBC Fintech reflects HSBC’s commitment to investing in mainland China and also our support to developing technology and innovation in the financial world,” quoted Wang as saying.

The bank also launched the service’s first solution, which happens to be a corporate employee benefits proposition.

Digital platform will encompass financial planning, employee benefits as well as wellbeing platforms.

“Through this corporate platform, we hope to provide dedicated financial services traditionally available only to high net worth customers to corporate employees on a broader basis, creating positive commercial value for companies, and bringing mutual benefits to both companies and employees,” the publication quoted Trista Sun, vice chair of HSBC Insurance Asia Pacific and execute director of HSBC Fintech Company, as saying.