Hsbc Unveils Financial Planning Service

HSBC has launched its financial planning service (FPS) for its Premier and PowerVantage customers.

The FPS is a comprehensive, integrated service that will assist customers in executing long-term savings and investment plans that are designed to achieve individual financial goals.

According to HSBC's senior manager, personal banking and cards, Vivek Kudwa, "The FPS is aimed at the Premier and PowerVantage customers. This service is not just an investment advice."

Adds HSBC's manager, FPS, Vijay Venkatram: "The FPS will quantify the resources of customers in terms of his/her personal finance -- both the present and the future. It will also quantify his/her personal obligations -- at what time would there be an outflow, of how much, and then identify the resources and obligations. It will help plan and manage existing and future savings to achieve life goals."

The threshold limit for the bank's Premier banking is at Rs 1 lakh, while for PowerVantage, it is Rs 25 lakh. This money could be in the form of investments in shares or fixed deposits. The threshold limit for the private clients is Rs 1.5 crore. HSBC had started its PowerVantage and Premier banking services in January and March 2000, respectively.

HSBC's CEO Zarir J Cama said: "Most customers for the private clients business come through referrals. HSBC is one of the largest banks with Rs 1,300 crore of assets under advice."

According to Venkatram, the model portfolios of HSBC have outperformed the Sensex by 35 per cent.

HSBC is also slated to launch a suite of mutual funds by April 2002. It had recently received approval for starting off its AMC business in the country.