HSBC is the world's local bank - Essay Example

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities. HSBC starts offering its e-banking since several years ago among other pioneers in banking services such as Citibank. Firstly, with regardless of absolute convenience of using online services, many existing clients of HSBC treated with suspicious, but later lots of customers started using it.

Besides e-banking helped HSBC to attract new customers, who were pleased of arrange for different payments via Internet, mobiles etc. HSBC specialists analysed, and then approved, that remote e-banking operations were cheaper comparing with using classic method with bank clerks' client servicing at the bank's branches. Surely, reliable and fast-acting e-bank system costs rather expensive, and should be constantly upgraded to reflect the new services, security requirements, the possibility of servicing growing customers' data base.

But nevertheless it became bore profitable and allowed customers to have full secure access to their personal accounts. The work entitled: "European Online Banking Strategies" published by Business Insights (2006) states that "eBanking is viewed as a 'must have' by retail banks across Europe. The need to keep up with competitors, retain existing customers and attract new ones has drive the market forward." (Business Insights, 2006)Figure 1 - Total Internet Banking Customers as a Proportion of Retail Banking PopulationSource: Business Insights (2006)The Business Insights Report 2006 states that: "Overall Internet banking customers will grow from 2% of the European retail banking population in 1999 to 9% in 2004" (Business Insights, 2006)Figure 2 - European e-learning IT expenditures 1999 & 2004Source: Business Insights (2006) Further related by the Business Insights (2006) report is that: "European eBanking IT expenditure will grow from $302m in 1999 to almost $1.

4bn in 2004 a CAGR of 30.9%. The most significant country market in terms of eBanking expenditure in 1999 was the UK which accounted for 27.3% of expenditure." (Business Insights, 2006)Figure 3 - Growth of European ITV Banking Users, 1999-2004Source: Business Insights (2006)Business Insights also reveals in its report that: "As premium becomes more established, the demand for increasingly indulgent and sensory tastes will become a more important driver, while income-related factors will decline in importance.

(Business Insights, 2006)Figure 4 - European e-baking IT expenditures, by project typeSource: Business Insights (2006) Finally related by the Business Insights Report (2006) is the fact that: "A key element of expenditure on developing full banking services was the integration of additional lines of business to allow online application, authorization and management. For example online approval in principle for loans, mortgages and