The Bankwatch

Tracking the consumer evolution of financial services

HSBC lay the law down with local business units

HSBC are doing what Citi have failed at to date. They are forcing local business units to adopt the central standard. For the life of me, I cannot tell why global Banks or any Bank with multiple business units for that matter, do not lay the law down and do the same thing.

Finextra: HSBC talks up IT integration initiative

The bank’s One HSBC initiative aims to establish a common technology platform across business units and regions. HSBC says the programme aims to “re-engineer the company so that wherever possible we use global systems”. This is expected to drive down costs and improve customer service.
… …

In the first six months the One HSBC suite was rolled out in Poland, Brunei, Australia, Russia, Chile, Indonesia and Slovakia, with another seven countries slated to deploy the technology in the second half of the year.

The alternative of allowing local business units to continue with their own strategies and that caters to local interests. However an aggregation of disparate local strategies added on to a centralised cost base of the mother ship can never be a long term successful strategy, whether within a country or globally. There are just too many examples of how that does not work. The duplications in costs are just too expensive and will not be countered by revenues that exceed those costs.

Written by Colin Henderson

August 4, 2008 at 22:34

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