HSBC Holdings Plc is turning to a startup to help it pick upmore middle-market customers.

The bank is working with Neptune Financial to offer onlinecommercial loans in the United States. HSBC is targeting companiesin cities including St. Louis, Minneapolis, and Jacksonville,Florida, where it doesn't already have a physical presence. Loanvalues will range from $1 million to $100 million.

“I would classify it as radical growth,” EJ Achtner, head ofdigital banking at HSBC's U.S. commercial unit, said in aninterview. He described the partnership as a cost-efficient way toexpand middle-market reach.

London-based HSBC isn't alone in its push into the middlemarket. Goldman Sachs Group Inc. is looking to boost revenue by $5billion, in part by selling more services to midsize companies. Italso joins regional U.S. banks that have been looking to offer moreonline loans.

The deal bolsters HSBC's effort to grow its commercial bankthrough a digital partner platform launching this year. It's partof a larger goal of turning around the U.S. business, which is thefirm's “most challenging strategic priority,” CEO John Flint saidearlier this month.

Copyright 2019 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.