Hsbc Plans To Be First Global Online Bank

SBC plans to be the first global online banking and investment services company, with Hyderabad likely to be a hub for back-end operations, according to Chris Hothersall, deputy chief executive officer of HSBC India.

He said this at a discussion here yesterday on e-commerce and the its marriage to banking and financial services in India and throughout the world. Hothersall was accompanied by HSBC's group general manager of global e-business, Roberta J Arena.

The joint venture between Merill Lynch and HSBC will accelerate the provision of this service. "The primary reason for this," she said, "is that both are global organisations, some bigger in some areas than the other, thereby making up for one where the other will lack or fall behind."

 

With this tie up, HSBC hopes to acquire a larger base geographically in order to provide online banking with an established name in both areas, of banking and investments.

This new company will serve people all over the world, except the United States, attempting to provide the industry's most comprehensive and innovative range of online banking and brokerage services.

"It would be basic interactive banking. Our client base is primarily middle-class, the self-directed investor who would want to access and monitor his investment portfolio and make informed investment decisions. The main feature would be the ability to access all facilities through a range of devices, not restricting it to just a personal computer or a mobile phone," Arena said.

The customer base would consist of three main categories -the individual, the small and medium sized businesses and big, global organisations.

HSBC alone is putting in $2 billion for technology support; while Merrill Lynch and HSBC are investing $500 million apiece for technology upgradation.

This service will be launched for the first time in United Kingdom this year in the fourth quarter.

On the basis of the response to this scheme, it will be launched in other countries. "India is fourth or fifth on the list," Arena said, adding that the actual date would be announce in the first quarter of the next year.