HSBC plans more high-tech jobs from China to push market share

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HONG KONG (Reuters) – HSBC Holdings PLC plans to put more than 1,000 jobs this year at its China technology development centers, where the Asia-focused lender looks to boost its presence in the second largest economy. in the world.

PHOTO FILE: HSBC headquarters building is featured in Pudong financial district in Shanghai, China December 8, 2010. REUTERS / Carlos Barria / File Photo

The largest bank in Europe will promote 14% assets at its technology centers in Guangzhou, Shanghai and Xi from a current 7,000-strong workforce, said Darryl West, HSBC's Chief Information Officer.

In recent years, the London-based bank spent $ 3 billion a year on its group technology operations employing 40,000 people worldwide, and the West said $ 3 $ 3.5 billion annual investments are planned in the UK. coming years. t

Many global banks have established low cost hubs in China and India more than a decade ago to maintain their complex information technology networks around the world, but these centers are now an integral part of their operations.

Centers develop and implement risk management and fraud technologies, as well as digital applications that facilitate banks in attracting customers and delivering faster and more secure services.

The HSBC expansion plan in China, an important market for the bank, comes from increased use of technology in the financial sector – from payments to transactions.

This involves a larger share of billions of dollars' worth of retail and corporate banking business in a major financial market with an expanding customer base.

“There is a lot more we can do with technology on mainland China. The level of technology acceptance and innovation in China is ahead of other markets, ”the West told reporters during a tour of HSBC technology center in Guangzhou southern city last week.

“We see mainland China as a great source of talent, not only for the local market but for our technology operations around the world. We are very pleased to hire here, ”he said.

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Approximately 30% of the work in Guangzhou, the largest HSBC facility in China with over 5,000 employees, is for the mainland market and this share is expected to grow in the coming years.

HSBC is using China based technology centers to develop banking products for its global network, such as the bank's U.K mobile app developed in the northwest city of Xi.

Outside China, HSBC employs over 10,000 people at technology centers in India, with the rest in countries such as Britain, Canada, Hong Kong and the United States.

In recent years HSBC has ceased investment in China, including the successful southern region of Pearl River Delta. Almost 40% of the bank's income in 2018 was part of the continent of China and Hong Kong combined.

The bank will invest $ 15- $ 17 billion over the next three years in areas including technology and China, last year Chief Executive John Flint said.

The limited physical presence of foreign banks in China is a major challenge compared to dominant domestic competitors.

HSBC's losses in retail banking and wealth management (RBWM) in the mainland expanded to $ 200 million last year from $ 44 million in 2017. The aim of the bank was to reverse this with its technology investments.

“Such things, which we see as very important for the next phase of our business growth… when the major investments have gone into effect, RBWM will grow more and more profitable,” said HS Wong, Chief Executive of HSBC. .

Reporting by Sumeet Chatterjee; editing by Darren Schuettler

Our Standards:The principles of Thomson Reuters Trust.

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