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HSBC wants to double mobile users by 2022

June 30, 2020 at 08:30AM

HSBC wants to double the bank’s number of mobile users by 2022 in a bid to generate more revenue per customer, Bloomberg reports.

HSBC office in UK

“All the industry is going to struggle for a while,” says HSBC exec

The aim follows plans it laid out to drastically reduce its branch-focused services. This will see $4.5 billion in cost cuts and roughly 35,000 jobs slashed.

Branch to mobile

The bank will focus on migrating services around account opening and investments to digital-only channels.

The branches will therefore be used for “more complex transactions”, such as family planning, life insurance and mortgage loans.

But where possible, the bank does want to reduce the paperwork around these more complex, in-branch financial services.

Acceleration in crisis

Kevin Martin, HSBC’s head of digital transformation for its wealth and personal banking business, tells Bloomberg “all of that was already underway” pre-coronavirus.

“This crisis has probably accelerated it,” Martin says. Though the bank did press pause on its cutting programme due to coronavirus uncertainty, it resumed cuts less than two weeks ago.

“All the industry is going to struggle for a while in terms of margin on deposits,” adds Martin. “What I would say though is that the cost to service our customers on average will decrease.”

Digital footprint to date

HSBC says almost 90% of its global transactions are already handled remotely and electronically.

This year, it has rolled out more than 270 new digital products and features to retail customers. This is up from 160 roll outs last year, Martin says.

The bank’s biggest profit in 2019 came from its wealth-related business. According to Bloomberg, retail banking and wealth management made up 36% of the banks overall pre-tax profits.

Read next: Bank of England adds another £100bn to combat COVID-19 economic crisis

via FinTech Futures – https://bit.ly/31vVwZd

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