Posted on 06/14/2015 1:24:54 PM PDT by Lorianne
Because they have economies with flattening income inequality. And that's bad for business. ___ he world’s local bank is about to get a little less local. HSBC is going on a cost-cutting tear, trimming branches in major markets and selling off entire operations in emerging ones. The bank’s leadership says they’re narrowing its business to improve profitability, but there’s a much bigger message — and possibly an important twist — in its new approach.
To understand HSBC’s decision, it helps to think about its business model. Retail banks that serve consumers and businesses make their money primarily through loans and fees. For loans to be profitable, local businesses have to be strong and, if possible, growing; if that’s the case, then clients are numerous, demand for lending is strong, and default rates are low. Fees can evaporate as demand for lending rises, since the banks need deposits in order to make loans. But regardless of loan volumes, fees are more plentiful when banks have high-value customers doing a lot of transactions with different kinds of accounts.
Naturally, banks with lower overhead can charge lower fees and offer less interest on loans, which is why online banks have started to pick up market share in the past several years. So in part, HSBC’s push to slim down and tech up is a response to market forces. The reorientation of its business has much deeper roots, however.
In the past two decades, as the global economy has become more integrated, retail banks have been markers of expectations for growth. In Brazil, HSBC ramped up its operations with a series of acquisitions.
(Excerpt) Read more at foreignpolicy.com ...
One of my family members works for HSBC in HK and I head there twice a year to visit. HSBC is a top notch financial institution and swears by it.
HSBC in America is the worst bank I’ve dealt with...
I dont give a shit. F off
I was posting my experience on the thread and not to you individually.
Sorry for your inner issues. I hope things get better for you.
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