HSBC, Yahoo! and Smart forge unique partnership

After introducing Internet banking, foreign bank HSBC once more pioneers mobile Internet banking technology to Philippine banking.

HSBC forged a partnership with Yahoo! Southeast Asia to start a wireless service that enables HSBC credit card customers to access the most current information of merchant offers and promotions on a specially-designed mobile Internet portal.

"Our initial target for the new service is the individual accounts, primarily the cardholders," James Benoit, HSBC senior vice president said.

That means initially the mobile portal would be information-based for consumer banking. Still under discussions would be the possibility of backroom or transactional capabilities.

The third partner for the mobile service partnership is Smart Communications Inc. Globe Telecommunications and Sun Cellular had already been approached.

Benoit explained that Smart got the first crack as it already had the technology, although all the telecommunications companies (telcos) must be a partner for the widest possible coverage.

The Philippines is the first Asian country to pilot the new service being the so-called SMS (short message system or text messaging) capital of the world.

"The Philippines is also one of the largest markets for Yahoo!" mail and messaging services in Southeast Asia, again accessed via WAP or the html browser. These factors make it the ideal test bed for the new wireless service," Benjamin J. Grubbs, Yahoo! Southeast Asia manager was quoted to have said.

The user will be charged P0.25 per kilobyte downloaded. Or if a webpage is four kbs size, it would cost the user P1 for the dowload.

The rational behind increased technology-based banking services is the need to reduce cost and increase accessibility and efficiency. And that means paperless and wireless transactions shifting to electronic-commerce, e-banking, e-transactions, and e-procurement. – Ted Torres