HSBC commits $17bn to technology investment
Written by Chris Lemmon
John Flint, group chief executive of HSBC, has revealed plans to invest $15-17 billion in technology as part of the bank’s growth strategy.
In a trading update, Flint explained that the bank is ready to get back into “growth mode” following a period of restructuring. “The existing strategy is working and provides a strong platform for future profitable growth,” he said.
“In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network. We will leverage our size and strength to embrace new technologies, investing $15-17bn primarily in growth and technology, subject to achieving positive adjusted jaws each financial year.”
The investment will be supported by eight strategic priorities:
1. Accelerate growth in Asia, building on strength in Hong Kong.
2. Complete the establishment of the UK ring-fenced bank, increase mortgage market share, grow its commercial customer base and improve customer service.
3. Gain market share and deliver growth from international network.
4. Turn around the US business.
5. Improve capital efficiency and redeploy capital into higher-return businesses.
6. Create the capacity for increasing investments in growth and technology through efficiency gains.
7. Enhance customer centricity and customer service through investments in technology: invest in digital capabilities to deliver improved customer service.
8. Simplify the organisation and invest in future skills.
Last month, the bank launched Connected Money in the UK, enabling customers to view their UK current account, online savings accounts, mortgages, loans and cards held across up to 21 different banks.