HSBC embarks on route to becoming entirely digital bank: reports

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HSBC embarks on route to becoming entirely digital bank: reports

HSBC is taking its first steps on a path to becoming an all-digital bank as it seeks to double the number of online users by 2022.

The covid-19 pandemic has seen most banks experience a surge in demand for online services, and HSBC says almost 90% of its global transactions are already digitally-based.

The UK-based, Asian-focused, bank this month revived its overhaul to reduce costs and close or wind down operations in under-performing markets. The lender is looking to make $4.5bn in annual savings by 2022, in the most ambitious overhaul in its history. The bank will also be cutting 35,000 jobs across the 65 countries it operates in.

All of that was already underway. This crisis has probably accelerated it."

Kevin Martin, head of digital transformation of its wealth and personal banking, told Gulf News the bank will strive to do away with paperwork and signatures wherever possible, as part of the move to online services. 

"All of that was already underway. This crisis has probably accelerated it," said Martin.

Referring to long-term low interest rates and now a wave of bad debts following the covid-19 crisis, Martin added: "All the industry is going to struggle for a while in terms of margin on deposits. What I would say though is that the cost to service our customers on average will decrease."

 

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.