HSBC tech spend pays dividends
(29 September 2006 – Europe) HSBC has said it will spend about US$5 billion on technology next year to support the growing amount of transactions that are made online or via direct channels.
HSBC chief information officer Ken Harvey told analysts that more than 70 percent of transactions were made online or via channels such as telephone banking and ATMs. In Hong Kong that figure was closer to 90 percent.
He said the huge investment the bank had made in technology was starting to reap benefits in terms of cost savings and the incremental revenue the bank gained from using tools such as its Whirl credit card platform which he estimated had saved HSBC US$43 million annually.
HSBC said it intended cutting transaction costs, such as those involved in processing credit card purchases, by about 10 percent each year and that it would show an 11 percent reduction this year.
HSBC is the world’s third largest bank.
He said the huge investment the bank had made in technology was starting to reap benefits in terms of cost savings and the incremental revenue the bank gained from using tools such as its Whirl credit card platform which he estimated had saved HSBC US$43 million annually.
HSBC said it intended cutting transaction costs, such as those involved in processing credit card purchases, by about 10 percent each year and that it would show an 11 percent reduction this year.
HSBC is the world’s third largest bank.
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