How Can Banks Enhance International Connectivity with Business Customers?: A Study of HSBC.

Trudeau, Christofer; McLarney, Carolan

Business customers represent a key source of HSBC's revenue. In 2014, of HSBCs $18.9 bn reported profit before tax, $8 bn or 42.3% was driven by their commercial banking arm. HSBC is at risk of losing business customers because of the challenges facing its international network. For over 150 years, HSBC's brick and mortar branches were gateways to international markets. Operating in all time zones, HSBC's global network was a key differentiator among its competitors and the primary lure for business customers. However, the banking sector is experiencing a paradigm shift, and HSBC needs to recalibrate its global network in order to stay relevant in a fast-changing industry. Given the backdrop, HSBC must execute a multi-pronged approach to enhancing international connectivity for its business customers. Distinct elements such as technology, partnerships, and emerging markets make up the challenge for HSBC's network and each must be addressed using unique strategies. The analysis of HSBC's network through different perspectives helps to isolate key gaps to be addressed. This paper has reviewed HSBC's current international network, what it means for business customers, and suggests various strategies to secure its relationships with business customers.

HSBC Holdings PLC; CORPORATE profits; BUSINESS revenue; INTERNATIONAL markets; BUSINESS partnerships

IUP Journal of Business Strategy, 2017, Vol 14, Issue 2, p20

0972-9259

Academic Journal