HSBC is reaping the benefits of a $5 billion investment in technology, with a large amount of its business being conducted through online channels, the company has revealed.
HSBC’s chief information officer Ken Harvey told analysts at a presentation that spending on the bank’s IT platform will rise by roughly 4% next year, to just under $5 billion. This is expected to promote a 16% growth in transactions.
The bank estimates that IT such as the group rolled-out Whirl credit card platform saves it $43 million annually. The platform was inherited from Household, a company HSBC bought in 2003.
Mr Harvey said that the bank is aiming to cut transaction costs by 10% each year; a realistic target considering that 11% was cut this year.
He also revealed that more than 70% of HSBC’s transactions are conducted through direct channels such as online, telephone, and ATM. In Hong Kong, the figure was over 90%.