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In: Economics

what are some changing economic factors that hsbc will need to take into consideration in the...

what are some changing economic factors that hsbc will need to take into consideration in the coming years

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what are some changing economic factors that hsbc will need to take into consideration in the coming years.

Answer-

The global economy has been changing rapidly in recent years. Whether grand scale or incremental in nature – most of these changes are based on new technology. What we see as a result is that banking customers today expect immediacy and flawless execution, with both international and local financial institutions being judged on the level and quality of their digital offering. HSBC must consider following factors and immediately implement the strategies in the coming years.

Corporate treasurers like HSBC need a range of solutions to simplify their day-to-day financial management responsibilities. With the external forces supporting the rise of non-bank financial services, Fintech firms are emerging that can address specific problem areas, often with a new perspective. While Fintech firms have some structural advantages that allow them to be nimble, The HSBC need to ensure that their Fintech providers meet trust, security, compliance, and risk requirements. As they balance risks and benefits of non-bank financial services, HSBC should do the following:

• Become familiar with emerging and evolving Fintech firms, capabilities, and technologies to assess their ability to improve treasury processes.

• Look beyond the hype and seek Fintech solutions that provide the most value. The solution needs to work, integrate smoothly with existing systems, and overall, not create more friction for the corporate treasury.

• Consider established financial technology providers for mission-critical treasury and financial management processes.

• Seek strategic banking partners who are focused on enhancing corporate treasury capabilities and understand what models they are using to experiment with new approaches and to improve their innovation capabilities.

• Challenge banking partners to position the strengths and weaknesses of their corporate banking solutions versus alternative non-bank financial services.

• Learn more about emerging technologies such as distributed ledgers, open APIs, and artificial intelligence with the potential to digitize, streamline, and transform critical treasury functions.

• Become part of the conversation by joining customer advisory councils hosted by banks and providers and influencing product direction for key technology enablers. Notwithstanding the Fintech hype, the most important resource any corporate treasury organization has is its strategic banking partners.

Banking partners understand industry sector distinctions and geographic nuances and are in a unique position to steer customers towards the most appropriate solution for a particular challenge.

As a result of these relationships, HSBC’s goal should be to be able to develop capabilities for customers faster and make agile changes in response to their feedback. Collaborating with other banks, IT providers and fintech start-ups, HSBC must explore an array of financial technology solutions to:

• Reduce costs and enhance service with robotization.

• Improve the digital user experience by enhancing digital interactions with clients

• Use data and advanced treasury analytics more effectively for insights into creating new revenue streams and best practices.

• Increase accuracy and speed of transactions, clearing and settlement.


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