HSBC Bank Term Project Report
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Transcript of HSBC Bank Term Project Report
1
Master of Business Administration (MBA) Program
Technology and Information System Management
Term Paper Assignment on
Electronic/Internet Banking System of
The Hong Kong and Shanghai Banking Corporation
Instructor: Dr. Siriwong Kangsumrith
Prepared by: Mr. PRABIN RAI
ID. # 5517190045
2
Table of Contents
1. Overall History of HSBC .................................................................................... 3
2. Business Development ........................................................................................ 4
3. Second World War and Effect to the Bank .......................................................... 4
4. Other Important Profile of HSBC ........................................................................ 5
5. History of HSBC in Thailand .............................................................................. 5
6. Organizational Structure and Management of HSBC ........................................... 7
7. Corporate Governance Policy & Business Strategy ........................................... 10
8. SWOT of HSBC ............................................................................................... 12
9. Problem Area, Investigation and Understanding of the Problem ........................ 14
Section – III: Environment Analysis of HSBC ................................................................ 15
1. Business Driving Forces ................................................................................... 15
2. Project Objectives ............................................................................................. 19
3. Alternative Solution and Feasibility Study ........................................................ 19
4. Risk & Risk Management of Internet Banking ................................................. 20
Section – IV: Financial Analysis of HSBC ...................................................................... 30
1. Decision Making Process .................................................................................. 30
2. Various Financial Analysis ............................................................................... 31
3. A Recommended Solution Vs Business Justification ......................................... 35
Section – V: System and Development Process ............................................................... 35
1. System Development Process and Requirement Analysis .................................. 35
2. Principle and Techniques to Success ................................................................. 39
3. Data Flow Diagram ........................................................................................... 39
Section VI: Way Forward ............................................................................................... 39
Appendix: ....................................................................................................................... 40
References ...................................................................................................................... 41
Methods Applied for this Project Work Mostly following methods were followed to prepare this term paper.
1. Discuss with teacher & follow his guidelines;
2. Surf internet and find out specific information;
3. Checked the lessons, book that was recommended by the teacher; and
4. Writing the required text following the guidelines.
The information on the strategies of e-banking of HSBC was very limited. As it has
strong security system therefore the information that we require for the technology is
very limited.
The Instruction is too big to follow within the short period time. Besides, the
instruction includes very detail information of the HSBC system development process and
its overall ins-and-outs which are limited in the web-site.
3
Section - II: History and Profile of HSBC Bank
1. Overall History of HSBC
HSBC stands for the "Hong Kong and Shanghai
Banking Corporation". It was founded in the former British
colony first in Hong Kong in March 1865 and Shanghai, one
month later, by Scotsman Sir Thomas Sutherland (1834–1922).
Initial capital was HK$5 million, when the bank opened its doors on 3 March
1865. The bank started issuing locally-denominated banknotes in both the Crown Colony
and Shanghai soon afterwards. The bank was incorporated in Hong Kong by special
dispensation from the British Treasury in 1866, and under the Hong Kong and Shanghai
Bank Ordinance 1866, a new branch in Japan was also established.
The founder, a Scotsman named Thomas Sutherland wanted a bank operating on
"sound Scottish banking principles". Still, the original location of the bank was considered
crucial and the founders chose Wardley House in Hong Kong since the construction was
based on some of the best Feng shui in Colonial Hong Kong. The bank initially leased its
premises for HK$500 a month in 1864.
HSBC Holdings plc established in 1990 became the parent company to Hong Kong
and Shanghai Banking Corporation in preparation for its purchase of Midland Bank in the
United Kingdom and restructuring of ownership domicile for the impending transfer of
sovereignty of Hong Kong to China.
HSBC is known as one of the largest financial and banking services industries in
the global environment. The company is headquartered in London and has an international
networks which composes of over 10, 000 offices in more than 87 states and territories
within Asia-Pacific Region, Europe, United States of America, Africa and Middle East.
HSBC Holdings Plc are regarded to have around 210,000 shareholders in over 100
nations as noted in listings in countries like New York, Bermuda, Paris and Hong Kong. It
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has over 300,000 staffs around the world. Very recently, the HSBC Bank has decided to
lay off about 15,000 staffs mainly from Europe.
Because of the global network connects by the implementation of advances
technology like the internet and information communication technology, the company has
been able to provide an intensive range and reach of financial services which includes
commercial banking, investment banking and market personal financial services, and other
banking and financial products and services. The business philosophy of HSBC gives
important to values and principles in all aspects of everyday living.
2. Business Development
Sir Thomas Jackson became chief manager in 1876. During his twenty-six year
tenure, the Bank became a leader in Asia. Notable events included being the first bank
established in Thailand, in 1888, where it printed the country's first banknotes; acting as
banker for the Hong Kong government from the 1880s; and participating in the
management of British colonial government accounts in China,
Japan, Penang and Singapore. A period of expansion followed, with new branch offices
opening in Bangkok (1921), Manila (1922) and Shanghai (1923), and a new head office
building in Hong Kong in 1935.
3. Second World War and Effect to the Bank
In anticipation of the Japanese invasion of Hong Kong in 1941, the Bank's head
office moved to London. During the period 1941-1943 the chief manager Vandeleur
Grayburn, and his successor David C Edmondston, both died while interned by the
Japanese. Arthur Morse was appointed Chief Manager in 1943 and led the bank after the
war.
The head office moved back to Hong Kong in 1946. During the Japanese
occupation the Bank's head office building was occupied as the headquarters of the Hong
Kong Japanese military government.
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HSBC Holdings acquisition of Midland Bank gave HSBC Group a substantial
market presence in the United Kingdom which was completed in 1992. As part of the
takeover conditions for the purchase of Midland Bank, HSBC: Holdings plc was required
to relocate its world headquarters from Hong Kong to London in 1993.
4. Other Important Profile of HSBC
In February 2008, HSBC was named the world's most valuable banking brand
by The Banker magazine. Not known for marked fluctuations in securities exchanges
around the world relative to its rivals, HSBC is a better known in banking circle for its
conservative and risk-averse approach in its business operations – a company tradition
going back to the 19th century.
In its technical management, however, HSBC has recently suffered a series of
headline-making incidents in which some customer data were allegedly leaked or simply
went missing. Although the consequences turned out to be small, the embarrassing effect
on the group's image did not go unnoticed.
As of 2 April 2008, according to Forbes magazine, HSBC was the fourth largest
bank in the world in terms of assets ($2,348.98 billion), the second largest in terms of sales
($146.50 billion) and the largest in terms of market value ($180.81 billion). It was also the
most profitable bank in the world with $19.13 billion in net income in 2007 (compared to
Citigroup's $3.62 billion and Bank of America's $14.98 billion in the same period).
HSBC is the largest bank both in the United Kingdom and in Hong Kong and
prints most of Hong Kong's local currency in its own name. Since the end of 2005, HSBC
has been rated the largest banking group in the world by Tier 1 capital.
5. History of HSBC in Thailand
HSBC is the first Commercial Bank in Thailand. HSBC initially opened for
business in Thailand in 1888, as it has already been mentioned above. It has been serving
Thai people for 12 decades. It was the first commercial bank in Thailand. HSBC has made
significant contributions to the establishment of solid foundations for Thailand‟s financial
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and banking sectors. For example, in 1889 HSBC issued the first banknotes in Thailand.
HSBC also issued the first foreign loan to the Thai government for its railroad construction
project. HSBC has always been a major driving force behind Thailand‟s commerce and
economy.
Throughout the past 120 years HSBC has based its standard services on an in-depth
local knowledge and a true recognition of the Thai people‟s changing needs. HSBC is
committed to its goal to be the best bank and a key driving force for the Thai economy and
Thai society forever.
From the first banknote to credit card, HSBC offers the true values to customers
from the international trade via freight to online international trade. Today, HSBC
provides a comprehensive range of financial and banking services to both corporate and
personal customers.
1888 2 December: The first step in Thailand as Hong
Kong and Shanghai Banking Corporation during the
reign of King Chulalongkorn. Its first office was
located at “the old Belgian Consulate” on
Charoenkrung Road.
1889 Introduced First Banknotes with the permission of Siamese
authorities. The currency notes were issued
in denomination of one, five, 10, 80, 90 and
100 ticals (baht) which were used widely to
pay debts and taxes among customs
officials and other government offices.
1902 When the Bank of Thailand issued its own banknotes in 1902, the
amount of the Bank‟s banknotes in circulation decreased gradually.
1890 Moving to “Tanam Si Phraya”. In 1890, the Bank moved to Roman-
style building between customers‟ lane
and Oriental building, a place known
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today as “Tanam Si Phraya” and the site of a luxury hotel, The
Oriental, for 87 years. The office building was declared officially
open by HRH Prince of Chandaburi, then the Minister of Finance.
1905 Siam's First Foreign Loans: The first public overseas loan to the
Siamese government was issued in 1905 for the announced purpose
of railway construction. The government, under the advice of a
British financial expert, wished to retain a minimum treasury
balance of 22 million baht. Railways were of a high priority in the
unification and centralization of the Kingdom, and therefore the
decision was made to borrow abroad.
The Siamese Ambassador in Paris approached two banks – one
British, HSBC, and one French, Banque de 1‟Indo-Chine, which
agreed to an internationalized issue; the French and British issued
bonds were to rank pari passu with delivery in London or Paris. The
actual signing of the agreement was celebrated with a dinner at the
Savoy for twenty persons including the Siamese Ambassador to
Paris, Phraya Suriyanuwatr. The loan was issued in both London and
Paris in March 1905.
1977 Moving to Siam Center. In 1977, the
Bank moved from Tanam Si Phraya to
Siam Center Department Store.
1982 Moving to HSBC Building on Silom
In 1982, the Bank moved to HSBC
Building on Silom road for 20 years until
2001.
2001 Moving to HSBC Building on Rama IV. On
9 February 2001, the Bank moved to HSBC
Building on Rama IV road until today1.
6. Organizational Structure and Management of HSBC
8
The HSBC Group has a significant presence in each of the world's major financial
markets, with the Americas, Asia Pacific and Europe each representing around one third of
the business. With around 8,000 offices in 87 countries and territories, 210,000
shareholders, 300,000 staff and 128 million customers worldwide, HSBC arguably has the
most international presence among the world's multinational banking giants.
The HSBC Group operates as a number of local banks around the world, which
explains its advertising tagline "The World's Local Bank." In response to ongoing
discussions about the survival strategies for banks, and the suggestion of "Living Wills"
HSBC explains its structure as "separately incorporated and capitalized" the structure is
based on a lead bank in each region, which has responsibility for the group's operations in
that area.
HSBC is a universal bank and is organized within four business groups:
a) Commercial Banking;
b) Global Banking and Markets (investment banking);
c) Personal Financial Services (retail banking); and
d) Private Banking.
HSBC is primary listing is on the London Stock Exchange (LSE) and it is a
constituent of the FTSE 100 Index. It has secondary listings on the Hong Kong Stock
Exchange (where it is a constituent of the Hang Seng Index), the New York Stock
Exchange (NYSE), Euronext Paris and the Bermuda Stock Exchange. As of August 2010,
it was the largest company listed on the London Stock Exchange, with a market
capitalization of £115.8 billion.
HSBC‟s organizational structure can be considered as liberal as every country
branches reports directly to the executive committee. This structure provides for a more
efficient management not only within localities but more so on the whole HSBC
organization. HSBC in HK is considered as one of the main branch in HSBC
organizational structure.
HSBC maintains a typical structure for transnational organizations: it has a central
committee that oversees all its branches and is also subdivided on national or domestic
markets. The local players are given their own autonomy in the structure. Being under the
9
skin and hair care division, it had been a tradition that zonal presidents handle the local
operations of HSBC. In this way, management decisions within the company are more
flexible.
Each of the members of the organizational structure of HSBC has their own
functions to contribute to the organizational performance of the company. Through the
organization structure of HSBC, the strategy imposed by the company has become more
effective because it enables the management the ability to plan, coordinate, and control all
activities (2004). Likewise, formalization is thought to lead to greater efficiency because
the predefined rules and procedures serve to routines repetitive activities and transactions
(2001). Organizational structure institutionalizes how people interact with each other, how
communication flows, and how power relationships are defined (1999). The structure of an
organization reflects the value-based choices made by the company (1992); it refers to how
job tasks are formally divided, grouped, and coordinated.
Moreover, company effectiveness necessitates changes in organizational structure
and design (1994). This is true for transnational organizations such as HSBC. Under the
organizational structure of HSBC in its brand, the management has been able synchronise
the parts of the organization. In addition, through it structure the company has been able to
ensure productivity. In addition, as part of its strategic management, HSBC has also been
able to constantly stock of its workforce and assess their performance in existing jobs.
Through its organizational structure, the HSBC has been able to improve
organizational performance via improving the performance of individual contributors,
within the structure. Further, the company has also recognises existing talent which is use
to fill vacancies higher in the organization or to transfer individuals into jobs where better
use can be made of their abilities or developing skills (2002).
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Managers have the primary role to make specific identifications of all the possible
sources of evaluation information which includes observable employee behaviours. This is
because aside from the observations of the immediate supervisor, performance evaluation
information can still come from a variety of other sources, including the employees,
subordinates, and work products.
Head office
The head office is in 8 Canada Square in Canary Wharf, London. On Friday 25
September 2009 the company stated that while its head office would remain in London and
the main regulator would continue to be the Financial Services Authority, the CEO moved
from London to Hong Kong in the beginning of February 2010. In each country there are
well establish office with well structured organizational structure, operational structure and
well-qualified staffs.
7. Corporate Governance Policy & Business Strategy
It has been reported that at the end of 2003, HSBC launched the „Managing for
Growth‟ program, which is a strategic plan that provides the company with a blueprint for
growth and development from 2003 to 2008.
This strategy builds on the company‟s strengths and addresses the areas where
further improvement is considered both desirable and attainable. HSBC‟s core values are
HSBC Head
Office
England
Latin America Middle East North America Asia Pacific
HSBC Mexico SA
HSBC Bank Brazil SA,
Banco Multiplo
HSBC Bank Argentina
SA
The Hongkong and Shanghai
Banking Corporation Ltd
Hang Seng Bank Ltd
HSBC Bank (China) Company Ltd
HSBC Bank Malaysia Berhad
HSBC Bank Middle East Ltd
HSBC Bank Egypt SAE
The Saudi British Bank
HSBC Bank USA Inc
HSBC Finance
Corporation
HSBC Bank Canada
Europe
HSBC Bank plc
HSBC France
HSBC Trinkaus und
Burkhardt AG
HSBC Private Bank (UK)
Ltd
11
integral to its strategy, in communicating them to customers, shareholders and employees,
and comprise an emphasis on long-term, ethical client relationships, high productivity
through teamwork, a confident and ambitious sense of excellence, being international in
outlook and character, prudence, creativity and customer-focused marketing.
Moreover, there are eight strategic imperatives included in the plan of HSBC in
accordance to their global development strategy. Their first imperative is their brand, by
making HSBC and its hexagon symbol one of the world‟s leading brands. The second
imperative is their Personal Financial Services, which drive growth in key markets and
through appropriate channels. The third one is Consumer Finance, which is extending the
reach of this business to existing customers through a wider product range to penetrate
new markets. The fourth imperative is Commercial Banking, making the most of HSBC‟s
international customer. Fifth imperative is Corporate, Investment Banking and Markets.
The sixth one is Private Banking, which aims to serve the company‟s highest value
personal clients around the world. The seventh imperative is the People, for attracting,
developing and motivating the employees of HSBC, leads to rewarding success and
rejecting mediocrity, and lastly, the company‟s Total Shareholder Return or TSR.
Fundamental Operating Strategy
Customer-driven company that stay close to customers
International teamwork
Strong capital and financial position
Conservative, sound risk management
Disciplines expense control
Ethical behavior, observing the letter and the spirit of rules and regulations
Customers remain at the center of HSBC strategic policy having a specific
strategy for each of the five worldwide customer groups. In addition, HSBC position as
the world‟s local bank enables to approach each country uniquely, blending local
knowledge with a worldwide operating platform.
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HSBC Strategy is focused on Customer Groups. Such groups comprises the
Personal Financial Services (PFS) including HSBC Premier, Consumer Finance (CF),
Commercial Banking (CMB) including Small and Medium-sized Enterprises (SMEs) and
Middle Market Enterprises (MMEs), Corporate, Investment Banking and Markets (CIBM),
and Group Private Banking (GPB).
HSBC is continuing to enhance certain products which are core to customer
group offering. Customer Proposition will be calibrated along a spectrum of strategic
advisory relationship between Corporate, Investment Banking and Markets, and Group
Private Banking. Premier International sets an example of enhanced personalized
banking. The brand has been already a great success and HSBC is continuing with the
next phase. The brand is now sufficiently strong that can accommodate brand variety at
customer, product and even country level as and when required by the business
model. Reputation is the key element of the brand proposition and cannot be
overstated. HSBC’s policies for corporate and social responsibility are part of the
brand. HSBC will treat employees with the same values as treating with
customers. Managing costs strategically will greatly help in achieving maximum
efficiency and flexibility. HSBC independent credit function has an excellent track
record in a testing environment. The substantially increased size of the Group means
that it is imperative to invest fully on people. The management of Group talent is at the
heart of the Group‟s competitive advantage and needs to be strengthened. Graduate
recruitment will remain central to the growth of talented people aligned to the Group
character.
8. SWOT of HSBC
Strengths
The bank is well capitalized and this has enabled it to perform relatively well
against other banks in recent economic events.
The level of capitalization means that, going forward, the bank is unlikely to need
to borrow from the UK government: this will enable it to retain more autonomy.
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The bank has a strong presence in emerging markets, putting it in a good position
to take advantage of future growth in those economies.
The bank‟s global presence in Europe, Asia and South America helps to spread risk
and offers significant economies of scale.
Despite rebranding relatively recently (1999), the HSBC brand has become well
established and is considered particularly valuable within the industry.
Weaknesses
HSBC associates itself strongly with investment in the small business sector, but
the current economic situation has led to increased risks, potentially
compromising the activity levels in this area of the operation.
The bank was involved with sub-prime markets in the US and has had to write off
Large figures lent to high-risk borrowers.
Despite falls in the UK interest rate, HSBC has increased its mortgage rates. This
may be perceived negatively by borrowers and potential borrowers, adds pressure
to an already depressed housing market and could ultimately lead to more
defaulting as borrowers struggle with higher repayments.
A redundancy programmed announced recently may affect morale among staff,
Leading to decreased production and loyalty.
HSBC‟s branding emphasizes its global presence, and this may be seen negatively
by some customers in its implication of homogenization and lack of
personalization.
Opportunities
HSBC‟s high level of capitalization places it in a strong position to acquire assets
Banks finding trading conditions particularly difficult at present may be available
at low cost.
HSBC also has adequate capital to purchase stronger banks such as Bank
Economic in Indonesia, in which it has purchased a stake to continue its Asia
expansion despite challenging economic times.
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HSBC‟s generally strong position presents the opportunity to outperform
competitors during the economic downturn and to build a reputation for being one
of the safer banks for depositors, helping to increase resources for lending.
Negative press coverage of competitors such as HBOS may encourage customers
to choose HSBC instead.
Threats
Trust in banks has decreased due to financial losses suffered by investors, who
May be more inclined to invest elsewhere.
Financial losses affecting banks and investors on a global scale have resulted in
less credit being available to customers. In the UK this is coupled with increases in
living costs resulting in less money being saved.
The falling property market has created a rise in numbers of homeowners with
negative equity. If a property is worth less than was borrowed to finance its
purchase, there is little likelihood that the bank will recoup all its losses if owners
default.
Claims have been made that HSBC has understated losses resulting from US sub-
prime markets, and this could undermine confidence in the bank
9. Problem Area, Investigation and Understanding of the Problem
1) There were no e-banking to serve the customers efficiently mostly who are long-
distance customers;
2) Manual banking system was time consuming so the bank started looking into
consideration to use latest technology for banking i.e. e-banking;
3) There could be a risk of virus attack and to make an alternative or to save the
information, there is a need of back-up-system;
4) Some other Problem Area:
a. Technology: The new systems that are used by the HSBC bank, staffs may
not be well capacitated. There may be new problem – related system
failure, old and new system match, security
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b. Management: Recruitment of new staffs who are well knowledgeable on
the latest electronic system. Cost of operation and management of the
system and system related aspect. If there were poor management, then the
system can fail
c. Organization: Security of the information and security of the customers
profile;
Investigation and Understand the program:
In regards to the technology and its operation, the company (here HSBC) must have back
files. In regards to the management: To organize a test-run and hire external to build the
capacity of the staffs. In regards to the organization, we must have human resources and
enough skill to support or carry out the work.
Section – III: Environment Analysis of HSBC
1. Business Driving Forces
The Intensity of Rivalry
There have many rivals in the banking and financial sectors. HSBC used
efficient strategies to ensure its leadership position in the market among rivalries. In
additions, due to the capabilities of other rival companies, HSBC develops strategic
plans to make sure that they are always be the number one choice of their customers
in banking and finance industries. However, during the current financial crisis, some
of banks went to liquidation, such as leman bother.
The Threat of Entry
With the potentials of having high profits in this kind of industry, HSBC is
subject to several threats of market entry. Such as, Tesco, UK largest super-market
consider to entry into banking industry. The threats of these new entrants sometimes
make or break an organization like HSBC. In this regard, HSBC has been able to
establish some entry barriers to ensure that their competitive advantage. The
company also uses strong branding images to make sure that their customers will
remain loyal to them.
16
The Threat of Substitutes
HSBC is also aware that their competitors will provide new products and
services in the future. The threat that these substitute products gives to HSBC‟s
profitability allows the company to work hard to sustain its position. Through the
strategy of HSBC in focusing on four different customer segments, the company has
able to provide needs of each customer group which lessen the impact of other
substitute products.
Bargaining Power of Buyers
Accordingly, the buyer power
is noted to be one of the two
important forces which affect the
occupation of the value established
by an organization. Herein, the vital
determinants of this force include the
size as well as the customer concentration. It can be said that HSBC has been able to
manage their customers effectively which allows the company to gain customer
loyalty and satisfaction. The strategy used by HSBC enables them to become the
world leader in banking and financial sector.
Bargaining Power of Supply
It is said that supplier power reflects to the buyer power. In this regard, the
analysis of this force commonly focuses on the significant size and concentration of
suppliers which is also relative to the competitors. It also focuses on the degree of
differentiation in the materials being supplied. It can be said that HSBC ahs the
ability to charge their target markets different prices in accordance with the
differences in the price formulated for each of the buyers. This usually implies that
the audience is described by high supplier power.
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2. Major Products / Services
There are several products and services that HSBC Bank over to its customers
throughout the world. The major products are as follows:
a) Finance and Insurance,
b) Consumer Banking,
c) Corporate Banking,
d) Investment Banking,
e) Investment Management,
f) Global Wealth Management,
g) Private Equity,
h) Mortgages,
i) Credit Cards,
HSBC Private Bank
HSBC Private Bank is the group's private banking operation, providing private
banking and trustee services to wealthy individuals and their families worldwide. The
Private Bank has in excess of 60 offices worldwide, with the major centres being Miami,
New York, London, Geneva and Hong Kong. There are different services or products
offered to individuals and their families throughout the world.
HSBC Premier
HSBC Premier is the group's premium financial services product. The exact
benefits and qualification criteria vary depending on country, but typically require deposits
and investments of at least $100,000, £50,000, or €100,000. Alternatively those who have
an individual annual income of at least £100,000 paid into their HSBC Premier Bank
Account and are a customer of the bank's Independent Financial Advisory Service.
Customers have a dedicated Premier Relationship Manager, global 24 hour access to call
centres, free banking services and preferential rates. A HSBC Premier customer receives
the HSBC Premier services in all countries that offer HSBC Premier, without having to
meet that country's qualifying criteria.
18
HSBC Advance
HSBC Advance is the group's product aimed at working professionals. The exact
benefits and qualifications vary depending on country, but typically require a transfer of
Salary of USD 1,500 or more every month or Maintain USD 25,000 of deposits in a
Savings/Current Account or investments. Advantages include and may vary depending on
country this include day-to-day banking services included but not limited to Platinum
Credit Card, Advance ATM Card, Current Account and Savings Account. Protection plans
and Financial Planning Services. A HSBC Advance customer enables the customer to open
accounts in another country and transfer their credit history.
HSBC Bank International
HSBC Bank International is the offshore banking arm of the HSBC Group,
focusing on providing offshore solutions and cross border services
to expatriates and migrants. It provides a full range of multi-currency personal banking
services to a range of customer segments, including a full internet banking and telephone
banking service. Sometimes referred to as "HSBC Offshore", the business also offers
independent financial planning, and has representative offices all over the world, often
working alongside local HSBC operations in those regions.
HSBC Bank International originated from the business started by Midland Bank
and is based in the Channel Islands with further operations on the Isle of Man. Its
operations in the Channel Islands are centered around its registered headquarters on the
seafront in St Helier, Jersey. Named 'HSBC House', the building comprises departments
such as Premier, Global Funds & Investments, e-Business and a 24 hour 'Direct Banking
Centre'.
HSBCnet
HSBCnet is a global service that caters to local business needs by offering
specialized functionality for different regions worldwide. The system provides access to
transaction banking functionality – ranging from payments and cash management to trade
services features – as well as to research and analytical content from HSBC. It also
includes foreign exchange and money markets trading functionality.
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The system is used widely by HSBC's high-end corporate and institutional clients
served variously by the bank's global banking and markets, commercial banking and
global transaction banking divisions.
HSBCnet is also the brand under which HSBC markets its global e-commerce
proposition to its corporate and institutional clients.
HFC Bank (UK Operation) is a wholly owned subsidiary, with 135 High Street
branches in the UK selling loans to the "sub-prime" market. During 2007 and 2008, it has
been trying to fend off a union recognition campaign by the Trade Union Unite.
HSBC Direct
HSBC Direct is a telephone/online direct banking operation which attracts
customers through mortgages, accounts and savings. It was first launched in the USA in
November 2005 and is now available in Britain, Canada, Taiwan, South Korea and France.
Poland is launching business direct in September 2009. In the US, HSBC Direct is now
part of HSBC Advance.
2. Project Objectives
The Company's corporate objectives are:-
To create and introduce financial protection solutions for all Thailand.
To leverage on HSBC Bank and corporate customer base to market its products by
complementing the Bank's full range of financial/banking solutions.
To access the full market by establishing partnerships with financial and other
institutions.
To build an innovative full company that will offer international standards with
local characteristics using best practices and building on the HSBC Group's global
activities.
3. Alternative Solution and Feasibility Study
While undertaking the new initiative to include the electronic banking, the HSBC should
have thought not only on the software but of the some other aspect of Management Issues
20
which could be termed as „alternative solution‟. Though this is part of the of the
information technology infrastructure. They are as follows:
a) Dealing with platform and infrastructure change: Firm using mobile computing and
clued computing platform will require new policies and procedures for managing
these platforms. It also needs scalability which refers to the ability of a computer,
product, or system to expand to serve a large number of users‟ without breaking
down.
b) Management and governance: It is a long standing issue among information system
managers and CEOs have been looking into.
c) Managing wise infrastructure investment on staffing, software, hardware and
relevant customers‟ knowledge. Need to think about the total cost of the inclusion
of IT and total cost of ownership; and competitive forces model for IT
infrastructure.
4. Risk & Risk Management of Internet Banking
Internet banking risks can adversely impact on an institution‟s earnings and capital.
Therefore, an institution offering Internet banking services is required to implement proper
and effective policies, procedures and controls to protect information and ensure its
integrity, availability and confidentiality. To assist institutions to properly identify,
quantify and manage risks associated with Internet banking, it is recommended that such
risks be categorized as follows:
Strategic risk
Strategic risk stems from inappropriate business decision and/or incorrect implementation
of decisions. An institution may incur substantial loss/wastage of its resources as a result
of incorrect choices or decisions regarding its Internet banking strategy. The institution
should conduct a feasibility study prior to initiating on Internet financial services.
Transaction risk
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Transaction risk results from flaws in system design, implementation or ineffective
monitoring leading to frauds, errors and failures to provide banking products and services;
To control transaction risk there is need for adequate security and monitoring of the
Internet banking system. An institution must have in place preventive and detective
controls to ward off its Internet banking systems from any unauthorized use, both
internally and externally. Adequate operating policies and procedures, auditing standards,
effective risk monitoring processes including contingency and business resumption plans
should be implemented.
Compliance risk
Compliance risk arises from failure to observe laws, rules, and regulations, prescribed
practices or ethical standards when delivering Internet banking services. The Internet
banking service should be designed and operated in such a manner that it always complies
with all relevant laws and guidelines. Every institution should state clearly in its Terms and
Conditions for Internet Banking Services and on its website that the governing law is the
Mauritian law.
Reputation risk
Reputation risk occurs when systems or products do not work as expected and cause
widespread negative public reaction. Internet banking systems that are poorly executed
would present this risk. An institution‟s reputation may also be affected if its Internet
banking system is unreliable or inefficient or the products and services offered are not
presented in a fair and accurate manner.
Adverse public opinion may create a lasting, negative public image on the institution‟s
overall operations, which may impair the institution‟s ability to establish new relationships
or services or continue servicing existing customers and business relationships. An
institution should undertake immediate and effective remedies to address operational
failures or unauthorized intrusions and ensure that timely steps are taken to address
adverse customer and media reaction.
22
Traditional banking risk
An institution offering Internet banking services is faced with the same types of traditional
banking risk such as credit risk, interest rate risk, liquidity risk, price risk and foreign
exchange risk. The Internet may, however, heighten some of these risks. An institution
providing Internet services should therefore develop appropriate and adequate systems to
manage the various types of traditional banking risks and maintain those systems on a
regular basis.
Risk Management Framework
Formulation of a policy
The development of Internet banking widens the scope for increased interaction between
institutions and their customers and opens up new avenues for cross-border banking
transactions exposing institutions to additional risks. Many aspects of risks associated
with Internet banking are neither fully discernible nor readily measurable. Accordingly,
each institution should develop a risk management framework that is comprehensive
enough to deal with known risks and flexible enough to accommodate changes. It should
be subject to appropriate oversight by the board of directors and senior management. The
sophistication of the risk management processes should be appropriate for the institution‟s
level of risk exposure.
Role of Board of Directors
The board of directors shall be the following:
a. approve the Internet banking strategy of the institution to ensure that it is
consistent with the institution‟s strategic and business plan;
b. Approve contingency and business resumption plans that should be in place
before an institution launches the Internet banking services.
c. set the level of Internet banking risk and review, approve and monitor
Internet banking technology related projects that may have significant
impact on the institution;
23
d. ensure that the Internet banking systems are operated in a safe and sound
manner, including the availability of contingency and business resumption
plans;
e. review and approve the information security policies;
f. ensure that an adequate system of internal controls is established and
maintained;
g. ensure that qualified and competent persons at senior level are employed to
identify, monitor and control Internet banking risks and that the
effectiveness of the internal control system is monitored on a regular basis;
and
h. Carry out an active oversight of the management of Internet banking risk of
the institution by regularly receiving comprehensive written reports
identifying material risks. In carrying out the above responsibilities, the
board may engage the services of outside experts, as needed.
Role of Management
The senior management should ensure that:
a. The Internet banking products are consistent with the institution‟s overall
strategic plans and the risks and ramifications of offering such products
over the Internet are within the institution‟s risk tolerance;
b. Necessary steps are taken to identify, monitor and control Internet banking
risk and monitor the effectiveness of the internal control system;
c. The Internet banking system is designed and operated in a manner that with
all relevant laws. Senior management should also monitor developments
and changes in consumer and banking laws, regulations and interpretative
rulings and take adequate measures to comply with them;
d. The overall effectiveness of the institution‟s internal controls is continually
monitored. There should be a proper system to track and report internal
control weaknesses for prompt corrective measures;
e. Adequate operating policies and procedures, auditing standards, effective
risk monitoring processes, contingency and business resumption plans are
available;
24
f. Adequate and comprehensive reports are provided to the directors for
decision making;
g. Adequate expertise and resources are available to operate and maintain their
Internet banking system; and
h. Effective channels of communication are established so that the employees
are fully aware of policies and procedures affecting their duties and
responsibilities, including a clear delineation of lines of authority and
responsibilities for managing Internet banking risks.
Security policy
Each institution shall establish a written policy on the overall security of its Internet
banking system.
Security Requirements
Each institution must have a security program providing for the security arrangements
which should achieve the following objectives.
a. Data privacy and confidentiality.
b. Data integrity.
c. Authentication/identification of counterparties.
d. Non-repudiation of Internet banking transactions.
e. Access control/system design to prevent unauthorized access attempts.
f. Business continuity plan.
An institution must have the following minimum security controls. However, it is the
institution‟s responsibility to ensure that its security controls are complete in the light of its
specific circumstances. As such, it could have additional security controls.
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Network and Data Access Controls
Each institution should apply adequate access controls to protect its network, applications
and data from unauthorized parties.
Access controls should be designed to effectively restrict unauthorized individuals from
entering sensitive data, retrieving confidential information or enabling access to bank
software applications and operating systems.
User Authentication
Each institution should put in place tested systems to securely authenticate the identity of
Internet banking customers when customers access personal account information or
engage in on-line transactions for products or services.
Each institution should provide sufficient authentication for Internet banking customers
who access personal account information or engage in online transactions for products or
services.
The authentication processes should be reviewed and periodically tested for effectiveness
through penetration testing and other monitoring methods. Senior management should
keep abreast of new or developing standards which may affect the institution‟s existing use
of authentication devices and processes. Each institution should use a combination of
access, authentication and other security controls to create a secure and confidential
Internet banking environment. These generally include passwords, firewalls, and
encryption.
Transaction Verification
Each institution should implement Internet banking agreements which clearly define the
procedures for valid and authentic electronic communications between its customers and
itself. The agreements should specify that the parties intend to be bound by
communications that comply with these procedures.
26
Each institution should maintain audit trails of all transactions to enable the verification of
specific transaction and provide evidence in the event a transaction is repudiated by its
customers.
Virus protection
Senior management should implement a detection and prevention program to minimise the
possibility of computer viruses. This program should at least include end-user policies,
training and awareness programs, virus detection tools and enforcement procedures.
Detection of possible intrusions
Each institution should make effective use of monitoring tools to identify vulnerabilities of
its Internet banking system and in a real-time mode, detect possible intrusions from
external and internal parties. In this regard, each institution is required to conduct
penetration testing and administer manual or automated intrusion detection processes.
Penetration testing
Each institution should use penetration testing to identify, isolate, and confirm possible
flaws in the design and implementation of passwords, firewalls, encryption, and other
security controls. The testing should be conducted by an objective, qualified, internal or
external source prior to the introduction of Internet banking and at least once a year or
whenever substantial changes are made to the Internet banking security systems.
Intrusion Detection
Each institution should set up strong intrusion detection devices to control network traffic
on a real-time basis. The intrusion detection system must withstand outside attacks and be
capable of identifying and reporting departures from normal processing. Adequate audit
trail mechanisms should be in place to prevent internal fraud, and provide the means to
detect unauthorized intrusion or transactions.
27
Each institution should ensure that it has a combination of regular monitoring of network
activity, a well-configured firewall, and regular reminders of its security policies. The
institution‟s security policy should make it incumbent on its responsible officers to report
security breaches promptly to a nominated member of senior management and to the Bank
of Mauritius.
Internet banking security program
Institution shall establish a written policy on the overall security of its Internet banking
system. Each institution shall further implement an overall security program which should
incorporate the institution‟s risk management controls. The security program should set
out the policies, procedures and controls to safeguard the institution‟s information, define
individual responsibilities, and describe enforcement and disciplinary actions for
noncompliance. The security program should establish the necessary organization structure
and accountability in the process of the management of risks associated with Internet
banking. The need to create awareness throughout the organization that security is an
important cultural value should also be ingrained in the security program. Every institution
should ensure that adequate training is provided to the relevant staff to keep them updated
on new security risks and methods of mitigating such risks.
Senior management should carry out regular security risk assessments to track down
internal and external threats that may undermine data integrity, interfere with service or
result in the destruction of information. Every institution should establish specific
reporting requirements for security breaches. Senior management should ensure that the
security measures instituted are current and properly implemented and comprehensive
security policies and procedures are stringently enforced.
An institution should adopt a security awareness program to give users a clear
understanding of the procedures and controls necessary for a secure environment. This
security awareness program should strengthen the institution‟s security policy and program
and may include, for example, instructions regarding password protection, Internet security
procedures, user responsibilities and employee disciplinary actions.
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Contingent and Business Resumption Plans
The contingent and business resumption plans should be approved by the board of
directors prior to the launching of Internet banking services. They should include measures
covering data recovery, alternate data processing capabilities, emergency staffing and a
public relations and outreach strategy to respond promptly to customer and media reaction
to system failure and unauthorized intrusions.
Outsourcing
Each institution may outsource its Internet banking systems to resident and non-resident
(i.e. located outside Mauritius) service providers and software vendors subject to the prior
written approval of the Bank of Mauritius and the following conditions:
The decision taking function of an institution should remain with it and the process to be
outsourced should not threaten its strategic flexibility and its process control;
The image, integrity and credibility of the institution should not be impaired by the
outsourcing arrangement;
The institution should be able to manage risks associated with these new relationships;
Appropriate oversight program should be set up to monitor the outsourcing vendor‟s
controls, condition and performance; and There should be adequate undertaking for regular
servicing by the supplier. Each institution should continue to remain responsible for the
performance and actions of its outsourcing vendors in relation to the services outsourced
by the institution. Each institution should be aware of the privacy concerns and its
obligations for any loss of control of customers‟ information.
Before contracting any Internet banking service, each institution should fulfill the
following conditions: The institution should perform sufficient due diligence to satisfy
itself of the outsourcing vendor‟s expertise, experience and financial strength to fulfill the
obligations; The written approval of the Board of Directors should be obtained to
outsource the Internet banking system to the service provider or software vendor; The
ownership and control of bank records should remain with the institution;
29
The institution should enter into a service agreement with the outsourcing vendor with a
clause on professional ethics and conduct in performing his duties. It should be clearly
stipulated in the service agreement that it reserves the right to terminate the services of the
outsourcing vendor if it fails to comply with the conditions imposed. The service
agreement should also clearly delineate the roles, responsibilities and accountability of
each party; The institution should carry out a risk assessment of such arrangements which
should ensure that adequate back-up arrangements such as alternative service providers are
available; The institution should have the ability to exercise the necessary control to
properly manage the outsourced system for providing the Internet banking services;
Customer Protection and Privacy Issues
Customer Education
Each institution should have a web page to educate customers on Internet banking
particularly, with respect to their rights and responsibilities and the protection of their own
privacy on the Internet. Prior to the offering of Internet banking services to their
customers, each institution is required to ensure that it has complied with the following:
The customers have agreed to the terms and conditions for Internet banking services; The
customers have been informed of the risks involved in the use of the Internet banking
services ; The customers know their rights and responsibilities and are fully aware that
they are responsible for their own actions; The customers have been informed that they
may specify maximum limits for funds transfer to limit their risks; The customers have
been advised to read the privacy policy statements of the institution and third parties (refer
to 13(ii) “Website links”) prior to providing any personal information to the institution or
third parties; and The customers have been educated on their role to maintain security of
their personal information by not sharing their IDs and passwords with anyone, by
changing their passwords regularly, and by remembering to sign off.
Product Transparency
Each institution should ensure that the products and services offered on the Internet are
fairly and accurately disclosed. The features of the products and services, terms and
13conditions including any fees, charges, penalties and relevant interest rates should be
made transparent to the customers in plain language as far as possible. Any agreements or
contracts should be made available in a form, which can be downloaded, printed and
retained by a customer.
30
Client Charter on Internet banking
Each institution offering banking products and services over the Internet should have a
Client Charter on Internet Banking. The Client Charter should at the minimum state the
institution‟s commitment towards ensuring safe operations, privacy of customer
information, reliable and quality services, transparency of products and services, and
prompt response for enquiries and complaints. The Client Charter must be prominently
displayed in the institution‟s website.
Privacy Policy
Each institution should adopt a privacy policy which explicitly lays down its commitment
to safeguard the privacy of customer personal information. The privacy policy statement
must identify the types of information the institution collects about customers and how the
information is used; provide a brief description on the kind of existing security procedures
that are in place or clearly state that sufficient safeguards have been put in place to protect
the loss, misuse or alteration of information under the institution‟s control including
restricting employee access to information, including that respecting a customer who has
terminated his relationship
Section – IV: Financial Analysis of HSBC
1. Decision Making Process
1. Financial services giant using data analytics software
2. To help process credit applications
3. Banking group HSBC is rolling out technology across the globe
4. To improve decision making processes when giving customers credit
5. HSBC signed a contract with data analytics firm Experian
6. and will use the firm's software
7. To improve credit application processing
8. The Strategy Management software will be used by the HSBC
9. To apply scoring models and judge the risk
10. associated with lending money to each individual
11. HSBC will deploy the rules engine software in 22 countries
31
12. It expects to make more than 50 billion customer
13. Lending decisions a year using the Experian-Scorex technology.
2. Various Financial Analysis
Comparative Table of Net Assets
At 31 March
2009
At 31 March 2010 At 31 March
2011
Adventurous
USD
Net Asset Value per Share
Class A
Total Net Assets
0.863
56,090,862
1.284
76,151,617
1.436
73,297,230
Balanced
USD
Net Asset Value per Share
Class A
Total Net Assets
1.024
124,763,563
1.425
162,633,829
1.566
158,051,474
Cautious USD
Net Asset Value per Share
Class A
Total Net Assets
1.300
58,666,253
1.611
73,169,921
1.724
71089445
Multimanager Premium EUR
Net Asset Value per Share
Class A
Class E
8.428
8.365
9.695
9.619
10.101
9.992
32
Class I
Total Net Assets
8.517
38,614,094
N/A
21,291,765
N/A
17,337.299
Absolute Return (EUR) Fund EUR
Net Asset Value per Share
Class AC
Class AD
Class EC
Class ZC
Total Net Assets
7.661
N/A
N/A
N/A
43,39,641
8.867
N/A
8.856
N/A
25,918,73
9.334
9.334
9.300
9.417
48,082.96
Note: “N/A” indicates that at the time of the report the share class was inactive.
Financial Performance of 2010:
Revenue US$ 98.918 billion (2010)
Operating income US$ 19.037 billion (2010)
Profit US$ 13.159 billion (2010)
Total assets US$ 2.454 trillion (2010)
Total equity US$ 147.667 billion (2010)
Employees 295,995 (2011)
Key Figures as at 31 March 2011
Adventurous
USD
Balanced
USD
Cautious
USD
Multimanage
r Premium
EUR
33
Class A
Numbers of shares
Outstanding
Net Asset Value per Share
51,057,133.16
1
1.436
100,904,121..37
1
1.566
41,226,519.14
3
1.724
9,209.053
10.101
Note: “N/A” indicates that at the time of the report the share class was inactive.
Advantages:
Cards that take you to different places:
When you travel to different places, you need a credit card that is flexible and available
everywhere. Credit card companies HSBC Premier has been recognized for more than 24
million companies worldwide credit card, HSBC Premier is no limit on credit. There is no
membership fee. And support. Usage patterns of your life with a list of awards. Things that
can cause fatigue, Liven up immediately.
The advantage of HSBC Premier credit card companies include
The list of winners in the local level; this will enable you to enjoy shopping. Fine dining,
enjoy the entertainment, Local and global experience.
Credit emergency cash to 2000 U.S. dollars; And a new card the next day when you're lost
or stolen card.
Wild card for you or your child with emergency assistance.
The credit limit that you control.
Emergency services around the world.
If credit card companies HSBC Premier MasterCard is lost, One +1-314-275-
6781. (Telephone collect call), we will cancel the card immediately and I will issue a
replacement card within the next addition. We can also provide emergency cash to you
before you get a new card. You can choose to receive cash in an emergency from 245,000
in 200 countries.
HSBC BUILDS ASIAN EQUITY TEAM TO DRIVE BUSINESS GROWTH
34
HSBC announced a series of new appointments across its equity functions within Global
Markets in Asia Pacific to drive business growth within the sector.
Chetan Patni was appointed Managing Director, Head of Execution and Sales Trading, in
India. Mr. Chetan will be jointly responsible for HSBC‟s Indian equities business with
Haresh Shivdasani, Managing Director, Head of Equities. Mr. Chetan reports to Rakesh
Patel, Managing Director, Head of Equity Sales and Trading, Asia Pacific. Prior to joining
HSBC, he was an Executive Director at J.P. Morgan India.
Gerardo Pablo joined the Bank as Head of Program Trading for Asia Pacific from BNP
Paribas Where he was Head of Global Portfolio Trading, Asia-Japan. Mr. Pablo will be
responsible for managing and executing Program Trading in the region. He reports to
Gavin Williamson, Head of Execution Trading, and Asia Pacific.
Alex Lupis was appointed Head of Corporate Access, Asia Pacific. He will be responsible
for managing and marketing HSBC„s Asia Pacific Corporate Access products globally and
reports to Mr. Patel. Mr. Lupis was previously Head of corporate Marketing City.
Sung Choi was appointed Head of International Equity sales. Based in Korea, Mr. Choi
will be responsible for managing the distribution and sale of Korean equity products to
institutional Investors in Asia, the US and Europe. He reports to Chehee Han, Managing
Director, Head of Equities in Korea. Mr. Choi was previously a Vice President at Morgan
Stanly.
Also joining the equity team as Directors of Equity Sales in HSBC Singapore are Michael
Gilmore and Sujit Sahgal. Mr Gilmore worked as Managing Principal at 3 Degrees Asset
Management, and prior to that was a ranked regional consumer and media analyst at UBS
and Nomura. Mr Sahgal served as an Executive Director at Bank Sarasin and was
previously a ranked regional tech/telecom analyst at UBS. They report to Roland Wee,
Head of Equity Sales, locally.
35
Eligibility
Individuals aged 20 years or above and residing in Thailand Existing HSBC current or
savings account holders.
3. A Recommended Solution Vs Business Justification
Since its creation in 1998, over 80% of Business Force-endorsed candidates have won
elections. Each election year, candidates and elected officials from throughout our region
eagerly seek the coveted Business Force endorsement.
Until now, each business person has had to “go it alone” in conducting time-consuming
independent research to properly evaluate state and local candidates or issues in our
region.
Section V: System Development Process and Requirement Analysis
HSBC SOFTWARE DEVELOPER COMPANY AND OWNER
HSBC Software Development (India) Private Limited (HSDI)
Develops software‟s, mainly banking, for the group. HSDI based in Pune is one among
the 5 such centers worldwide. They also have data processing centers at different points in
India for the effective data processing for the group.
NAME OF SOFTWARE USED BY HSBC:
Bottom-line preferred supplier of BACS software to HSBC corporate Clint
Bottom-line Technologies (NASDAQ: EPAY), a leading global technology provider of
financial Business Process Management (fBPM) software and managed services, today
announced that it entered into an agreement with HSBC Bank to become the sole supplier
36
of HSBC‟s branded BACS-IP desktop software. In addition Bottom-line will be the
preferred supplier of BACSTEL-IP solutions to the Bank‟s corporate clients.
HSDI (HSBC software development in India) Automated Software Testing Tool:
HSDI follow these automated software testing tool after develop the software Test
Complete is a full featured automated testing tool for creating and running software tests,
which can make your testing faster, more reliable and save you money.
Software Tests with Test Complete
Keyword-Driven testing
Functional testing
Unit testing
Data-driven testing
Manual testing
Web/Ajax testing
Script-Based testing
.NET and WPF testing
Regression testing
Distributed testing
Java testing
HTTP Load testing
HCBC SEURITY TOOLS
HSBC online bankers free security software:
HSBC is providing free software for online banking customers to help protect them from
hackers.
HSBC's new OTP security device for online banking customer,
HSBC Bank is sending its personal internet banking customers a new One Time Password
security device that will add an extra layer of security when accessing their accounts
online, helping to protect their identities and reduce fraudulent attacks. The HSBC Secure
Key generates a unique PIN code each time a
customer logs on to their online banking accounts and
does not require a bank card to be inserted into the
reader.
37
HSBC sees the rollout as part of its wider responsibility to protect its online banking
customers however, following on from earlier initiatives distributing several free pieces of
online AV software from McAfee over the last year and providing the Trustee Rapport
software free-of-charge to its customers, which also helps to protects customers when
accessing accounts online but including payment transactions over eBay or similar sites.
The Rapport system, which establishes a secure VPN-like tunnel between the customer
and the bank or online e-commerce site, has been used on more than 115 million
individual HSBC online banking sessions since its installation last year.
We are actually reviewing iPhones from a HSBC Group perspective and when I say that, I
mean globally," HSBC's Australia and New Zealand chief information officer
BrentonHush told ZDNet.com.au yesterday.”
Global banking giant HSBC is considering ditching the BlackBerry and adopting Apple's
iPhone as its standard staff mobile device, a move that could result in an order for some
200,000 iPhones. HSBC has some 300,000 staff internationally. A decision to standardise
on the iPhone on its corporate networks would likely lead to one of the world's largest
iPhone orders. A decision on a piece of hardware like that would potentially be deployed,
conservatively, to 200,000 people,“said Hush. "You know, it's a big decision, especially
when you have an existing fleet out there.“But it's definitely something we are considering
from a HSBC Group perspective," he said."We always explore the potential application of
new technologies and this is no different."
HSBC Software Development
Develops software's mainly Banking HSDI based in Pune is one among the 5 such
centers worldwide as a cost saving measure HSBC is off shoring processing work to lower
cost economies in order to reduce the cost of providing services in developed countries.
These location take on works as DATA PROCESSING, CUSTOMER SERVICES,
INTERNAEL SOFTWARE ENGINEERING at Pune (India), Hyderabad(India),
Vishakhapatnam (India), Kolkata (India), Guangzhou (China), Curitiba (Brazil) and Kuala
Lumpur (Malaysia)
REASON OF OUTSOURCING
38
QUALITY REPUTATION
• HSBC needed to move to a new technology platform and become more efficient
• The bank also wanted to be able to put more people on a job, if necessary, to get it
done faster
Here are some lessons that HSBC has learned from its outsourcing experience:
Start small, and then build up.
Customer involvement is crucial.
Use a hybrid off shoring model.
Build a sense of community.
Quality is key.
CHALLENGE
To gain a greater understanding of customer relationships
Position new products, improve distribution channels, and calculate total customer
lifetime values.
SOLUTION
Trillium Software System
Data Warehousing
CRM
RESULT
An understanding of the total present and future value of each customer
Enables HSBC to be more competitive the new system, with reliable data quality
at its core,
Provides accurate, more timely, and actionable information to decision maker.
E-Banking Security of HSBC
Rapport is a free piece of security software it is designed to complement your antivirus,
anti spyware and firewall software making your use of Internet Banking more secure.
The software prevents data being intercepted by fraudsters even if your computer is
infected by viruses or malware it protects your username, password and other sensitive
login information. The benefit of the e-banking security software:
39
Locks down your connection
Safeguards your identity
Built in protection for HSBC
Protect other sites as well
Easy install , Small footprint ,
Ahead of the game , Extra protection layer
Its free
2. Principle and Techniques to Success
The Group's Business principles direct how our business strategy is expected to be
implemented. They underpin the business conduct of all HSBC employees and the Group's
Values and HSBC's reputation is based on adhering to these. The HSBC Group is
committed to the following Business Principles:
Outstanding customer services
Effective and efficient operations
Strong capital and liquidity
Prudent lending policy
Strict expense discipline
3. Data Flow Diagram
Data flow chart of HSBC
Section VI: Way Forward
40
HSBC is obsessed with customer value and strives to be an "all-weather umbrella" to its
customers, by adopting different strategies for different situations. It is rightly mentioned
that „The Global Local Bank‟ for all nations. The world at present is facing a huge
currency war. It is tough to maintain the income and ensures customers and shareholders
profit at the challenges of US dollar and Euro crunch. HSBC is strong enough to maintain
the growth and satisfy its customers. It is strong enough to manage the technology, overall
management, and
The major drawback of the internet banking is that the customers‟ awareness raising and
customers knowledge is yet to be develop. There is a training session is needed for this
towards the customers.
Appendix:
Goal of the Job:
This Term Project aims to acquire in-depth competencies (knowledge, skill and attitude) of
„Bangkok based electronic / internet banking system of HSBC Bank‟ through the all
individual efforts.
Objectives of the Project:
a) To study collectively the all the technological system of electronic banking system
covered by HSBC Bangkok;
b) To research the probable threat of electronic banking and security measures of
HSBC Banking;
c) To enhance the knowledge and skill of handling system of electronic banking of
HSBC and similar type of system of other banking.
Some tasks to conduct this Term Project:
a) To search, share and know history and overall organizational profile of HSBC
through internet;
b) To search, share and know the overall external and internal environment of HSBC;
c) To search, share and analyze the products that HSBC offers for the customers;
41
d) To search, share and analyze the e-banking offered by HSBC;
e) To follow the reporting format given by the Course Instructor, Dr. Siriwong
Kangsumrith and take his kind support and advice for presentation.
Conclusion: All the Term Paper assigned will be able to analyze e-banking system of any
banking institution at the end of this Term project. Besides, they will be able to know the
challenges and security measures for any e-banking system. This will also enable them to
be confident to working in any banking institutions and build up strong career path. Most
importantly, the sharing with the classmate will enable the personal upgrade to minimize
the knowledge gap and be professional in facing any critical questions.
References
http://en.wikipedia.org/wiki/HSBC
http://www.hsbc.co.th/1/2/about-en retrieved Oct 9,2011