HSBC plans more China tech jobs in push for market share

HSBC’s expansion plan in China, a key market for the bank, comes amid growing use of technology in the financial sector — from payments to transactions. (Reuters)
Updated 21 May 2019
0

HSBC plans more China tech jobs in push for market share

  • Europe’s biggest bank by assets will boost headcount at its technology centers in Guangzhou, Shanghai and Xi’an by 14 percent
  • HSBC’s expansion plan in China comes amid growing use of technology in the financial sector — from payments to transactions
HONG KONG: HSBC plans to add more than 1,000 jobs this year at its technology development centers in China, as the Asia-focused lender seeks to bolster its presence in the world’s second largest economy.
Europe’s biggest bank by assets will boost headcount at its technology centers in Guangzhou, Shanghai and Xi’an by 14 percent from a current 7,000-strong workforce, said HSBC Chief Information Officer Darryl West.
In recent years the London-based bank has spent $3 billion annually on its group technology operations which employ 40,000 people worldwide, and West said annual investments of $3-$3.5 billion are planned over the next few years.
Many global banks set up low-cost hubs in China and India more than a decade ago to maintain their complex worldwide information technology networks, but these centers have now become a core part of their operations.
The centers develop and implement risk and fraud management technologies, as well as digital applications that make it easier for banks to attract customers and deliver faster and more secure services.
HSBC’s expansion plan in China, a key market for the bank, comes amid growing use of technology in the financial sector — from payments to transactions.
At stake is a bigger share of the billions of dollars worth of retail and corporate banking business in a major financial market with a growing customer base.
“There is a lot more we can do with technology in mainland China. The level of technology adoption and innovation in China is way ahead of other markets,” West told reporters during a tour of HSBC’s technology center in the southern city of Guangzhou last week.
“We see mainland China as a tremendous source of talent, not just for the local market but our technology operations globally. We are hiring very aggressively here,” he added.
About 30 percent of the work done at the Guangzhou center, the largest HSBC tech facility in China with more than 5,000 employees, is for the mainland market and that share is expected to grow over the next couple of years.
HSBC is also using China-based tech centers to develop banking products for its global network, such as the bank’s UK mobile app which was developed in the northwestern city of Xi’an.
Outside China, HSBC employs more than 10,000 people at technology centers in India, with the rest in countries such as Britain, Canada, Hong Kong and the United States.
HSBC has in recent years lifted investment in China, including the prosperous southern Pearl River Delta region. Mainland China and Hong Kong together accounted for nearly 40 percent of the bank’s revenue in 2018.
The bank will invest $15-$17 billion in the next three years in areas including technology and China, its Chief Executive John Flint said last year.
The limited physical presence of foreign banks in China compared to dominant domestic rivals has been a challenge.
HSBC’s losses in retail banking and wealth management (RBWM) in mainland China widened to $200 million last year from $44 million in 2017. The bank aimed to reverse that with its investments in technology.
“Things like that, we see as very important for the next phase of our business growth ... once the major investments have gone in, RBWM will grow bigger and also profitable,” said HSBC Greater China Chief Executive Helen Wong.


Lebanon’s Hariri calls for cabinet solidarity in budget debate

Updated 18 June 2019
0

Lebanon’s Hariri calls for cabinet solidarity in budget debate

  • The PM said cabinet ministers need to be united and responsible
  • Lebanon’s debt is almost 150% of its GDP

BEIRUT, June 18 : Lebanon Prime Minister Saad Al-Hariri on Tuesday called for parliament to quickly approve the country’s 2019 budget and urged his coalition government to avoid internal disputes.
The cabinet this month agreed a budget plan that shrinks the projected fiscal deficit by 4 percentage points from last year to 7.6% by cutting spending and raising taxes and other fees.
“What I want during the debate is for us to be responsible and united, and not contradictory,” Hariri said in a statement, addressing cabinet ministers as to their comportment during the parliament debate.
Parliament’s finance committee is debating the draft budget and has suggested amendments, local newspapers reported. It will then put the budget to the full assembly to ratify it.
Parliament is mostly composed of parties that are also present in the coalition government and which supported the budget there.
Since the budget was agreed there have been fierce arguments between parties in the coalition over several subjects, though these have not targeted the budget.
Lebanon has one of the world’s heaviest debt burdens, equivalent to about 150% of GDP, and the International Monetary Fund has urged it to cut spending.
“We have held 19 cabinet meetings to agree on this draft budget and these sessions were not for fun, but for deep, detailed debate over every clause and every idea,” Hariri said.
“For this reason, I consider it the responsibility of each of us in government to have ministerial solidarity...to defend in parliament the decision that we have taken together,” he added.
After the 2019 budget is agreed, the cabinet must quickly start working on the 2020 budget and on approving the first phase of a program of investments toward which foreign donors have offered $11 billion in project financing. (Reporting by Angus McDowall, editing by Ed Osmond)