In the fast-evolving world of payments, anticipating client needs and harnessing the power of technology is vital. In an exclusive interview with Euromoney, Manish Kohli, global head of payments solutions at HSBC, discusses what it takes to run the world’s best bank for payments and treasury and the world’s best cash management provider.
HSBC remains the largest global transaction bank by revenue and the division would comfortably be a FTSE 100 business on a standalone basis. Overseeing a business that connects billions of transactions globally, Kohli offers a perspective that balances the immediate demands of the market with long-term strategic investments.
When you move on, what will you be remembered for? I want our legacy to be that we built the best transaction bank, not just financially but in terms of client experience. And my legacy is this current generation of the leadership team: the best bank can only be built by the best people.
The client needs’ Venn diagram
For Kohli, clients’ businesses are changing at pace. “Clients are increasingly looking globally for growth, embracing digital models and direct-to-consumer approaches,” he says. These shifts create both challenges and opportunities, particularly in how companies manage payments and treasury functions.
Redefining payment simplicity
Launched in November 2024, Smart Transact is a flexible payments platform designed to help businesses expand globally. The solution streamlines domestic and cross-border payments with a single platform and tools like real-time tracking and mobile security. It is underpinned by quick, paperless onboarding and clients can scale the solution with add-ons such as corporate cards and savings accounts.
HSBC has restructured to facilitate this growth ramp. The bank's acquisition of SVB UK in 2023, and subsequent globalisation of HSBC Innovation Banking, means it banks more hypergrowth start-ups in the innovation economy. Also, the recently formed corporate and institutional banking business combines its wholesale franchises to service clients’ journey across the growth continuum – from start-up to mega-cap.
How to understand and address client needs? Kohli describes it as a continuous exercise in alignment. “I think of it as a Venn diagram: what a client wants, what we can do, and the overlap where we already have solutions. The areas outside of that overlap – that’s our feeder pipeline to product development.”
This enables HSBC to innovate in a way that is both targeted and scalable. He adds: “When we win a deal, I always ask: what did the client want that we couldn’t deliver? It’s a cultural shift – always be inquisitive, always improve.”
Sports cars and smooth highways
HSBC’s innovation strategy focuses largely on enhancing payments infrastructure. Kohli sees real-time payments as transformative but emphasises the need to address challenges such as fraud. “For example, when real-time payments became big in the UK, fraudsters were the first to capitalise. Now, we’re embedding deeper mechanisms, such as payee name verification, to tackle these risks.”
The integration of APIs has also been a game-changer, making payment systems faster and more adaptable. “Real-time payments using files is like building a sports car and driving it on a dirt road. APIs give us the smooth highways we need,” Kohli says, illustrating the bank’s commitment to technological modernisation.
Value-added services, such as alias payments, are another key focus. “Imagine not needing to remember account numbers – using an email address or phone number instead. These are the kinds of innovations that simplify payments and make them more ubiquitous.”
Making cash work hard
Treasury optimisation has become one of the most pressing concerns for corporate clients. Kohli highlights how geopolitical uncertainty and currency volatility are driving demand for more efficient cash-management solutions.
“Clients want multi-currency pooling structures, automated FX sweeps and tools to reduce idle balances,” he says. “The cost of debt remains high, so companies are looking to optimise liquidity and make cash work harder.”
This need for agility extends beyond day-to-day operations. HSBC has responded with solutions such as automated forecasting and global cash visibility tools, helping clients make faster and more informed decisions.
Preparing for the future
Kohli highlights four key areas for the industry’s future:
- The rise of digital economies
Kohli notes that the shift from cash to digital payments – driven by the gig economy and tech platforms creating ecosystems – is reshaping economies. “This trend will accelerate, and we’re deepening our investments in APIs and real-time payment systems to intermediate these flows.” - Cross-border payments
While domestic payments are becoming increasingly seamless, cross-border transactions remain complex. “The future lies in integrating real-time domestic systems with cross-border capabilities. It’s a complementary investment addressing a different use case,” he explains. - Treasury optimisation
Beyond cash visibility, Kohli envisions a future where clients can forecast liquidity weeks in advance. “This is about streamlining global cash management – whether through automated FX sweeps or multi-currency pooling structures,” he says. - The future of money
Programmable money and digital assets, including central bank digital currencies (CBDCs), could redefine financial systems. However, Kohli cautions that this area is still in its infancy, adding: “We’re exploring how programmable money could make transactions smarter and frictionless, but this requires collaboration across regulators, banks, and technology providers.”
Ownership and legacy
HSBC’s leadership philosophy is anchored on collaboration and accountability. Kohli stresses the importance of enterprise leadership, urging his team to think beyond individual roles. “Your job is not just to generate value for your P&L but for the group and, by extension, the customer,” he says.
He also advocates for an “owner-operator model”, where leaders take end-to-end responsibility. “If a system goes down, it’s not just a tech problem – it’s a wider problem, involving multiple stakeholders,” Kohli explains. This principle extends to resilience metrics such as mean time to recover, which are built into performance goals across the organisation.
Kohli’s vision for HSBC is clear: to be the world’s best transaction bank, defined not by size but by the satisfaction of its clients. Reflecting on the Euromoney survey results, he says: “The result validated that we’re making clients’ lives easier. That’s what the best bank should be – a partner that delivers simplicity and value in a complex world.” Clients seem to agree, having ranked HSBC as the world’s best cash management for client service in the survey as well.
Kohli emphasises the importance of legacy. “When you move on, what will you be remembered for? I want our legacy to be that we built the best transaction bank, not just financially but in terms of client experience. And my legacy is this current generation of the leadership team: the best bank can only be built by the best people.”
