Turn complaints into innovations (HSBC)

Managing Innovation and Creativity

“Turn complaints into innovations (HSBC)”

Content’s:-

1. About on HSBC.

2. HISTORY.

2.1 Foundation & Growth

2.2 Presence In India(HSBC IN INDIA)

3. Key Atributes

4. Subprime Crisis

5. Government Intervention

6. Strategies Used by HSBC

6.1 Managing for Growth

6.2 Human resource Management.

6.3 Customer Relationship Management

6.4 Management to ensure

6.5 Importance of Organizational Structure and Culture in HSBC Strategic Management

7. HSBC Invest many where they are following down some organization there HSBC are investment

7.1 HSBC Private Bank

7.2 HSBC Premier

7.3 HSBC Advance

7.4 HSBC Bank International

7.5 HSBCnet

7.6 HSBC Direct

7.7 Brand and advertising

7.8 Logo

7.9 Customer groups

7.10 Personal financial services

7.11 Commercial banking

7.12 Private banking

8. There are many complaints which are face the HSBC bank

9. HSBC Credit Crad issue

10. HSBC reduces complaints by growing them

About on HSBC:- The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 in Hong Kong and Shanghai to finance the growing trade between China and Europe. It is Also called as world's local bank. HSBC Holdings plc is incorporated in England and Wales, headquartered in London. As of 2008, it is both the world's largest banking group... In Hsbc bank cash department is most important. Since any transaction of money can take place... The Hongkong and Shanghai Banking Corporation acquired a 51% shareholding in Marine Midland... This is a central sort code used for most Abbey/Santander personal accounts regardless.Sort Code 09-01-26. The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history rich in variety and achievement.

HISTORY:-

Foundation and growth:- The inspiration behind the founding of the Bank was Thomas Sutherland, a Scot who was then working as the Hong Kong Superintendent of the Peninsular and Oriental Steam Navigation Company. He realised that there was considerable demand for local banking facilities both in Hong Kong and along the China coast and he helped to establish the Bank in March 1865. Then, as now, the Bank's headquarters were at 1 Queen's Road Central in Hong Kong and a branch was opened one month later in Shanghai.

In many of its branches the Bank was the pioneer of modern banking practices. From the outset, trade finance was a strong feature of the Bank's business with bullion, exchange and merchant banking also playing an important part. Additionally, the Bank issued notes in many countries throughout the Far East

The making of the modern HSBC Group:- The post-war political and economic changes in the world forced the Bank to analyse its strategy for continued growth in the 1950s. The Bank diversified both its business and its geographical spread through acquisitions and alliances. However, it remained committed to its historical markets and played an important part in the reconstruction of Hong Kong where its branch network continued to expand.

In 1959 the bank completed two important purchases, those of The British Bank of the Middle East (now HSBC Bank Middle East) and the Mercantile Bank. The British Bank of the Middle East had begun life as the Imperial Bank of Persia in 1889 but throughout the 1940s and 1950s had extended its sphere of operations and pioneered banking in the Gulf states. In 1965 the Bank purchased a controlling interest in Hang Seng Bank, which had been established in Hong Kong in 1933. By the 1970s the policy of expansion by acquisition of subsidiaries with their own identities and specialisations was firmly in place.

During the 1980s the Bank concentrated on moving into those markets where it was not yet fully represented. Hongkong Bank of Canada (now HSBC Bank Canada) was established in 1981 and HongkongBank of Australia (now HSBC Bank Australia Limited) in 1986. In 1987 Marine Midland Bank (now HSBC Bank USA), based in New York State, became a wholly owned member of the Group and its principal subsidiary in the United States.

The acquisition in July 1992 of Midland Bank in the United Kingdom created one of the largest banking and financial services organisations in the world. Midland was founded in 1836 in Birmingham and had grown in the nineteenth and twentieth centuries through a series of mergers and amalgamations. In 1974 Midland acquired the London merchant bank of Samuel Montagu, whose own distinguished history stretches back to 1853.

Presence In India(HSBC IN INDIA):- In India, the introduction of HSBC Bank can be dated as early as the year 1853, with the establishment of the Mercantile Bank of India in Mumbai. Currently, HSBC Group operates through a number of its subsidiaries in India, viz. The Hongkong and Shanghai Banking Corporation Limited (HSBC), HSBC Asset Management (India) Private Limited, HSBC Global Resourcing / HSBC Electronic Data Processing (India) Private Limited, HSBC Insurance Brokers (India) Private Limited, HSBC Operations and Processing Enterprise (India) Private Limited, HSBC Private Equity Management (Mauritius) Limited, HSBC Professional Services (India) Private Limited, HSBC Securities and Capital Markets (India) Private Limited and HSBC Software Development (India) Private Limited. The group carries out its Commercial Banking, Banking Technology, Asset Management, Global Resourcing, Insurance and Data Processing operations in the country through its subsidiaries

HSBC Bank is well known for having established the first ATM (Automatic Teller Machine) in India in the year 1987. As of April 2009, the bank is present in many prominent cities of the country including Mumbai, New Delhi, Bangalore, Hyderabad, Jaipur, Chandigarh etc.it is largest banking group in the world, and the 6th largest company in the world as of April 2009.

Key Atributes:- With a loan-deposit ratio of 90%, HSBC Bank is said to be one of the five British banks that claim to have more deposits than loans. Such a high loan-deposit ratio of the bank has been able to retain the trust of its investors and customers, keeping them assured of its financial strengths. The sound financial position of the bank can also be attributed to the fact that its stocks maintained relatively high price even during the credit crunch phase, something not commonly seen to have happened to other banks.

Subprime Crisis:- In November 2002 HSBC expanded further in the United States. Under the chairmanship of Sir John Bond, it spent £9bn (US$15.5bn) to acquire Household Finance Corporation (HFC), a US credit card issuer and subprime lender.In a 2003 cover story, The Banker noted "when banking historians look back, they may conclude that it was the deal of the first decade of the 21st century".Under the new name of HSBC Finance, the division was the second largest subprime lender in the US.In March 2009.

Chairman Stephen Green stated, "HSBC has a reputation for telling it as it is With the benefit of hindsight, this is an acquisition we wish we had not undertaken.". analyst Colin Morton said, "the takeover was an absolute disaster"

According to Bloomberg, "HSBC is one of world’s strongest banks by some measures."When HM Treasury required all UK banks to increase their capital in October 2007, the group transferred £750 million to London within hours, and announced that it had just lent £4 billion to other UK banks.In March 2009, it announced that it had made US$9.3bn of profit in 2008 and announced a £12.5bn (US$17.7bn; HK$138bn) rights issue to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights' issue's implications for institutional investors caused volatility in the Hong Kong stock market: on 9 March 2009 HSBC's share price fell 24.14%, with 12 million shares sold in the last few seconds of trading.

Government Intervention:- In 2010 the French government's Autorité de la concurrence (the department in charge of regulating competition) fined eleven French banks, including HSBC, the sum of 384,900,000 Euros for colluding to charge unjustified fees on check processing, especially for extra fees charged during the transition from paper check transfer to "Exchanges Check-Image" electronic transfer.

Strategies Used by HSBC:- HSBC has been able to use different strategies For order to compete successfully and reach competitive advantage,

Managing for Growth:- One of the strategies used by HSBC is the strategy. Such strategy enables the company to grow and develop even more. The strategy has been able to build the strengths of the company and adheres with the areas which are in need of further enhancement. Since the main objective of the company is to be the leader in financial services sectors, the company uses strategy that strives to protect and sustain a leading position among their target market.

Human resource Management:- This strategic which provides intensive and comprehensive values among their employees. For the company, an organisation that has employees who are productive and highly motivated will help them reach their organisational goal.

Customer Relationship Management:- The objective of using CRM is to make sure that the company is always adhering to the needs and demands of the customers. Through the use of the information technology, specifically the internet, the company has been able to reach different customers from al over the globe and provide them quality and satisfactory products and services.

Management to ensure:- The company also uses strategic that all their business practice will enable them to have a competitive advantage in both local and international market. HSBC is aware that having good reputation in the marketplace helps the company in becoming more appealing in their target market. With this, part of their strategy is to implement a corporate social responsibility which will is recognises its accountabilities within the society, The company sees to it that they are always aspired with the highest principles of conducts.

Importance of Organizational Structure and Culture in HSBC Strategic Management:- HSBC has been known to maintain a tightly built organization that maintains a liberal view in terms of recruitment. Most of HSBC’s employees on its country branches are members of the locality. Moreover, its 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 Invest many where they are following down some organization there HSBC are investment.

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.

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.

HSBC Advance:- HSBC Advance is the group's product aimed at Working professional. 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-today banking services included but not limited to Platinium 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 there 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 centred 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 specialised 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.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.

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.

Brand and advertising:-The group announced in November 1999 that the HSBC brand and the hexagon symbol would be adopted as the unified brand in all the markets where HSBC operates, with the aim of enhancing recognition of the group and its values by customers, shareholders and staff throughout the world.

Logo:- The hexagon symbol was originally adopted by The Hongkong and Shanghai Banking Corporation as its logo in 1983. It was developed from the bank’s house flag, a white rectangle divided diagonally to produce a red hourglass shape. Like many other Hong Kong company flags that originated in the 19th century, and because of its founder's nationality, the design was based on the cross of Saint Andrew. The logo was designed by graphic artist Henry Steiner.

Customer groups:- HSBC splits its business into four distinct groups:

Personal financial services:- HSBC provides more than 100 million customers worldwide with a full range of personal financial services, including current and savings accounts, mortgage loans, car financing, insurance, credit cards, loans, pensions and investments.

Commercial banking:-HSBC provides financial services to small, medium-sized and middle-market enterprises. The group has almost 2.5 million of such customers, including sole proprietors, partnerships, clubs and associations, incorporated businesses and publicly quoted companies.

Private banking:- HSBC Private Bank is the marketing name for the private banking business conducted by the principal private banking subsidiaries of the HSBC Group worldwide. HSBC Private Bank, together with the private banking activities of HSBC Trinkaus, known collectively as Group Private Banking, provides services to high net worth individuals and their families through 93 locations in some 42 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. As of December 2007, profits before tax were US$1,511 million and combined client assets under management were US$494 billion.

In September 2008, HSBC announced that it would combine its two Swiss private banks under one brand name in 2009, with HSBC Guyerzeller and HSBC Private Bank to be merged into one legal entity, under the newly appointed CEO of HSBC Private Bank, Alexandre Zeller.

There are many complaints which are face the HSBC bank

HSBC Credit Crad issue:- I Was holding a HSBC card and i stoped using the crad after confirming from customer care that there is no outstanding against the card as on date in the month of Jan 2005 and droped HSBC Card.

Peter of South San Francisco, CA August 25, 2009:- Motorcycle repossessed. Faxed proof payment was made. They said they didn't receive my fax. Went on to say that even if they received my proof it dosn't matter as I have a history of late payments. I will have to pay balance of 7,750 PLUS towing & storage fee's. If I cannot pay this, my bike will be sold and I will still be responsible to pay any short fall plus towing & storage fee's.

Read more: http://www.consumeraffairs.com/finance/hsbc.html#ixzz154UPjKt5

Thomas of Rosemount, MN August 27, 2009:- Begining in January 2009 we began the process for Loan Modification. We have been working through a company called Save My Home USA located in Micigan. We paid this company 300 up front for assistance. To date the loan mod still is not done. I have called HSBC and of course they wil not talk with me but they do say the notes in our file does say it is at the attorneys office. We are in a chapter 13 bankruptcy having not missed or been late on mortgage payment or bankruptcy payment. We have about 16 months left in our chapter 13. We are told that the loan mod is only for the remainder of our bankruptcy, we were gol it would be for the remaindre of ghe loan. Who do we believe?

Read more: http://www.consumeraffairs.com/finance/hsbc.html#ixzz154UixXdI.

Arjun of Fresh Meadows, NY August 15, 2009:- I am writing to express my immense disappointment with HSBC at Kissena Blvd, NY in Flushing and bank in general. [They] have just lost a customer for unethical practices of doing business and have robbed me of 72.00 with unclear maintenance fees, which we were never told about. A little more than a year ago we opened this bank account for the sole purpose of transferring money from my HSBC bank account to this account to buy a home. We were successful in buying a home but unsuccessful in establishing a banking relationship with bank. When we went in person to the bank asst manager F. Burns and Parveen were unable to refund the money to our account and the only option they could give us was a one month refund, and said you will be charged another fee this month as you do not meet our balance of 5000.00.

Read more: http://www.consumeraffairs.com/finance/hsbc.html#ixzz154V41qrh

Being unreasonable:- 1. One cheque dropped in wrong drop box. But collected at right time by HSBC. Second cheques also to avoid delay collected by Local bank. Both the cheques for same month deducted from my account. My bankers are apologetic for the error, since first cheque could not be returned

2. In the month of September, 2008 a letter was sent in confirmation to deduction of my bonus points and despatch of gifts. Neither the gifts have reached nor the points deducted have been redeemed. The HSBC says forget about it. It is an old case.

HSBC reduces complaints by growing them:- HSBC has an internal team responsible for customer experience around the world. 50 people have to change the way 330,000 people work, improving things for more than 100 million customers. A first priority in 2009 was to look innovatively at how complaints are handled, working with The Foundation.

The initial big step has been cultural – seeing complaints as an opportunity to improve business insight and customer experience, rather than something to be minimised. This was turned into a plan for each HSBC country in three stages:

1. Make sure each customer making a complaint is happy by the end of the process – an outcome as much about empathy as resolving the issue. This is more important than closing the complaint quickly, something regulators measure that can be counter-productive. Some banks, focusing more on regulation than customer outcomes, resolve complaints without ever telling the customer and leave them feeling unsure. In Canada, HSBC has a “Recovery with Flair” scheme, where central complaints staff can solve the problem themselves and then send an apology (e.g. flowers) to customers.

2. Make it easier to complain. This seems strange – it increases the number of complaints. But if most customers are happy with the process, then more complaints mean HSBC hears about more issues and gets a clearer picture of what needs fixing. Often banks make you write to your branch manager to make a complaint. HSBC India has a “grievance redressal” button on every page of their website, to make complaining quick and easy.

3. Remove the root causes of complaints. This reduces the number of problems out there, not just the number of complaints (total number of complaints is often measured by regulators, but this can discourage banks from listening to their customers). Where shallow analysis might define “fees” as the root cause of a complaint, it is often about the way that fees are communicated. HSBC Malaysia found that a charge for SMS updates was an unwelcome surprise for customers. They now refund the fee the first time and clearly explain the charge to customers, removing the surprise and the feeling of unfairness.

Commenting on progress, Alex Matthews, Head of Service Quality, said ‘Although it seems counterintuitive that an increase in complaints can lead to improvements in customer experience, we have had support from across the world for this direction and it is now being implemented in countries as diverse as China, Canada, France, the UAE and the UK.’

BIBLIOGRAPHY:-

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4). http://www.iloveindia.com/finance/bank/foreign-banks/hsbc-bank.html