Strategic Proposals to Manipulate the Trends - Essay Example

In Nigeria for example, efforts are directed to reach male customers as they are seen as the primary wage earners and decision-makers in the family (Omar 3).  Beck, Behr, and Guttler found out that female loan officers, statistically and economically perform better than their male counterparts due to “significantly lower default rates associated with their borrowers” (31). As CEO of HSBC, gender differences are not to be considered a threat or competition. Rather, it is an opportunity to produce expand the business for more income opportunities. HSBC is already making profits from Red MasterCard, a credit designed exclusively for women. Innovations that address male and female preferences will take HSBC farther.

Under the economic segment, unused lending capacity, idle cash, and depressed market values trigger mergers and acquisitions between banking institutions.  U.S. Bancorp, PNC, BB&T, and People’s United Financial (PBCT) have all made acquisitions, and their executives say they’re hunting for more(Henry & Campbell). HSBC acquired Household International and 14 others in 2003: a total of 216 acquisitions and stakes in 104 companies as of 2011 (HSBC Global Site). The same tactics by the rest of the key players in the industry should not pose a threat, HSBC profit doubled in 2010 (Treanor), and as CEO will continue seeking fore that can add to our assessed consequently, increase market share.

On October 1, 2011, the Federal Reserve limited fees that card networks charge merchants to 21 cents per transaction. In reply, the largest banks have rolled out new charges for debit customers to catch up on what they may lose under the rules (Mattingly). Attorney General Eric Holder was demanded by five House Democrats to investigate whether there has been collusion among financial groups to impose new debit fees. HSBC recently introduced a debit transaction fee of 35 cents, though the first eight transactions are free (Bernard and Protests). If in case, the government remains strict in its decision, HSBC can instead focus on obtaining new debit customers and develop other methods to minimize expenses allotted for the service.

The technological segment has made almost all transactions doable online. Customers need not make personal appearances to apply for new accounts, transfer funds, and make purchases. In this aspect, HSBC never falls behind, and even strives to become a leader in convenient banking (HSB Global Site). Unfortunately, internet crimes are prevalent; and stringent laws on Identity Theft do not seem enough. Customers have become anxious; this should serve as an opportunity for HSBC to craft pioneering solutions to earn their trust. Apart from the typical username and password tandem, HSBC created a security device to enable account viewing and management by customers. Firewall systems are great but are not ultimately impenetrable. Investing in other security systems, say for example access by thumb marks or eye detection can protect customers from malicious intents.

In response to globalization, large banks are initiating business process outsourcing to least developed countries like India, the Philippines, and Malaysia. HSBC has gone global long before the trend set in. The competition grows stiffer as more and more businesses follow in its feet including J.P. Morgan Chase, Citibank, and Barclays Bank. Just the way McDonald’s appealed to millions of customers worldwide by adapting to their socio-cultural inclinations, HSBC will do just fine keeping its promise of being the world’s local bank. In China, HSBC buildings are designed and located by the Chinese feng shui beliefs, while those based in the United States uphold time-efficient transactions. Because the world today shows a more serious environmental concern, HSBC should strive to enhance corporate social responsibility and ecological preservation.