Image credit: The Edge Markets
PETALING JAYA: HSBC Bank Malaysia Bhd is strengthening its digital capabilities as it builds partnerships with key players in the digital space.
The bank’s chief executive officer Stuart Milne said the future of banking is all about digital enablement and HSBC intends to be a leader in this space.
“While we continuously enhance our digital innovations and features to provide a more convenient and seamless banking experience for our customers, we are also digital innovators that are going beyond banking to create end-to-end strategic digital solutions that add value to our customers across the spectrum – from our employees, to our retail and wholesale customers,” he told StarBiz.He expects more than 90% of HSBC’s corporate transactions in Malaysia to be done via digital channels by year-end.
More than 90% of retail transactions of the bank would be on digital channels by the end of next year, he added.
Therefore, Milne said the bank was looking at growing its tech investment in a range of initiatives to make it easy for customers to bank with HSBC and grow their business.
HSBC is the first bank in the country to launch a digital account opening journey with a 24/7 self-service machine for identification and verification process.
It also executed the first ever live blockchain letter-of-credit transaction in 2019 and has commercialised this technology in Malaysia.
He said it looks to build more partnerships with key players in the digital ecosystem in areas such as co-creation as well as other collaborative initiatives to help local businesses thrive.
HSBC Malaysia inked its first memorandum of understanding with the Malaysia Digital Economy Corp (MDEC) last year focusing on enhancing the adoption of technology among small-and-medium enterprises (SMEs), large local corporates and multinational companies in the country.
On climate and sustainability finance, Milne said HSBC was committed to becoming a net zero bank, reducing its footprint through its operations, supply chain and financing portfolio.
“Being net zero means reducing the emissions we add to the atmosphere while increasing the amount we remove, so we achieve a balance that protects the planet.
“We see our role as being here to help finance the transition to net zero. That’s why we’ve committed up to US$1 trillion (RM4.18 trillion) in investments, loans and capital raising by 2030.
“In Malaysia, HSBC has been at the forefront of driving the sustainable finance agenda, helping to build a thriving, resilient future for society and businesses,” he added.
HSBC acted as joint lead manager and joint bookrunner on the government’s US$800mil (RM3.3bil) 10-year Sustainability Sukuk and US$500mil (RM2.1bil) 30-year sukuk. Its Islamic banking subsidiary, HSBC Amanah Malaysia, acted as joint sustainable development goals structuring agent on the 10-year tranche which represents the world’s first sovereign US dollar Sustainability Sukuk.
HSBC Amanah is on the path to becoming HSBC Group’s first sustainable banking entity by the end of next year.
Milne said the bank was moving to a hybrid working model wherever possible, giving its staff the flexibility to work in a way that suited them and their customers.
“We will need less office space as a result, and we have plans to reduce our global office footprint by more than 3.6 million square feet – or around 20% – by the end of 2021,” he said.
A hybrid workforce refers to a team of employees who have a flexible work structure where some may work remotely and others from the office.
As for the outlook of HSBC’s domestic operations for this year and next amid the pandemic, Milne said: “With the rapid acceleration of the vaccination rate, prospects for economic recovery in Malaysia are solid.
“Banks have played and will continue to play a key role in efficiently and effectively channelling credit into the economy.
“Beyond the very specific relief measures, our goal is to help customers build financial resilience rather than financial reliance. In the current climate we’re doing this in two ways.
“Firstly, by helping individuals and SME customers who are most vulnerable and facing difficulties to receive assistance, and secondly, connecting our customers to the wider opportunities that Asean is presenting around trade, digital, wealth and sustainability,” he said.
Source: https://www.thestar.com.my/business/business-news/2021/10/11/hsbc-strengthening-digital-capabilities