Organization in banking sector



HSBC is well known Organization in banking sector. It is a largest banking and financial organization in the world. HSBC is an international company which has around 8500 offices in 86 countries and territories. It is an international bank, which is spread all over the world. It has a lot of branch in the London.

HSBC has recently grown through a further acquisition. The HSBC banking group has become the largest bank in the UK. Around half of all people in the UK now bank with HSBC banking group. The group has the largest branch network of any UK bank. The acquisition also means that the new group has a broader range of expertise with multiple brands under its banner. It is a more diverse business, with stronger market presence in areas such as mortgages, insurance, finance and investment.

HSBC is using variety of advance technologies to make an international network, including a rapidly growing e-commerce capability; HSBC provides a comprehensive commercial range of financial services corporate service, personal services, private banking and other activities. They offer many other services including Braille, large print statement and sign language interpretations.

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With listings in the London, Bermuda, HongKong, New York, Paris and stock exchange shares in HSBC Holdings plc are held by around 220,000 shareholders in 119 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.

HSBC working since 45 years they are providing Internet banking disabled customer account, mortgage, house loan etc. It is totally financial company but they providing as well as insurance.

History of HSBC

HSBC was born from small idea; it is a local bank to serving local needs. In March 1865, it?s opened in HongKong and Nowadays it welcome all over the world customers. It has 140 years experience in china. The intervening year shave formed the character of HSBC. Its experiences have created its core strengths of resilience, adaptability and capability for innovation. A glance at its history explains why it believes in capital strength, strict cost control and in building long-term relationships with customers. HSBC has weathered change in all forms ? revolutions, economic crises, new technologies ? and has adapted to survive .Growth has come organically and through strategic acquisitions, and these purchases have brought their own strengths and cultures to the Group. The resulting corporate character of HSBC enables it to meet the challenges of the financial world of today and tomorrow .This brief history introduces the major events, decisions and personalities that have made HSBC what it is today.

In November 2002 HSBC expanded further in the United States. Under the chairmanship of Sir john Bond, it spent ?9 billion (US$15.5 billion) to acquire house finance corporation US credit card issuer and sub prime lender. In 2003 cover story, the banker noted when banking historians look back, they may conclude that was the deal of the first decade of the 21st century. Under the new name of HSBC finance, the division was the second largest sub prime lender in the US.

The business turned sour, costing HSBC US$62 billion. In March 2009, HSBC announced that it would shut down the branch network of its HSBC finance arm in the US, leading to nearly 6,000 job losses and leaving only the credit card business to continue operating.

Chairman Stephen Green stated, HSBC has a reputation for telling it as it is. With the benefit of hind sight, this is an acquisition we wish had not undertaken.? Analyst Colin Morton said,? The takeover was an absolute disaster?.

Although it was at the centre of the sub prime storm, the wider group has weathered the economic crisis better than other global banks. According to Bromberg HSBC is one of world?s strongest banks by some measures. When HM treasury required all UK banks to increase their capital in October 2007, the group transferred ?750 million to London within hours, and announced that it had just lent ?4 billion to other UK banks. In March 2009, it announced that it had made US$9.3 billion of profit in 2008 and announced a ?12.5 billion (US$17.7 billion) rights issue to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights issues implications for institutional investors caused volatility in the HongKong stock market on 9 march 2009 share of HSBC price fell 24.14%, with 12 million shares sold in the last few seconds of trading.

SWOT Analysis


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HSBC is an international company itself, it is more successful company. It gives advice to other companies in respect of international business. With Offices around the world, for the multicultural client, HSBC often cannot be beaten in this area. HSBC knows how to follow in M&A and structural and effective growth it was mostly an Asian bank until it took over a UK bank in 1992 and now has become the world's second-largest bank by profit. HSBC knows how to make more and more money.

HSBC service is faster than other banking and financial sector. If you open your account with HSBC you will receive your every thing within seven working days like HSBC debit card and cheque book etc.

HSBC is primarily listed on the London and HongKong stock exchanges, which saves the company much sorrow in to agree with new American Sarbanes-Oxley laws. Many companies have chosen to list on foreign exchanges other than America because of the expensive new regulations.

HSBC is second largest bank in the world. It has a huge technology, to connect international market. It is best company to exchange foreign currency. Nowadays so many people believe to HSBC guide line.


While it is definitely a global company, HSBC came late to the game on deciding to perform an included marketing strategy and profit from on its international brand. Because it had set up so many different banks in different countries at different times over a hundred year period, it set them up under different names HongKong Bank of Canada, British Bank of the Middle East, HSBC Banco Roberts. Not even all of these Banks, prior to 1998, carried the HSBC logo. In 1998, they were all branded together, but the previous lack of branding and the name changes may have hurt HSBC in brand recognition. Customers may have thought that HSBC was taking over their local bank and not realized that HSBC had already been serving them for decades. In any case, the re-branding was an overdue move that should have occurred before 1998.

As is frequently the case, proof profits can only last so long. HSBC announced in December 2006 that it was doing just as well as last year, but not as well in revenues. It announced that each year, its bad debt rises.


Other banks are running frightened of this region. However, HSBC has run its regional business locally and been rewarded for its attempt with abundant awards and tribute for the Middle East market. HSBC is a reliable name there, and the company has engaged advantage of Iraq's new democracy by creating an attendance in the country. HSBC is the biggest international bank in the Middle East.

In totalling to the growing Chinese middle class, Brazilians and Indians are opening to appear as growing consumers, and therefore growing consumer spenders. Some denizens of these countries previously did not even own a bank account, but companies like HSBC are prepared to move in and take advantage of the growing middle class in these areas. In places like Argentina and Turkey, HSBC experienced pre-tax profits of 50% last year. This is where it is growing the most. By investing in these countries, HSBC can counterbalance problems it may have as spending in the US and UK declines.


As interest rates grow and the housing explosion ends, Americans are fore cast to rely less on consumer credit and more on their saving expertise to get by. The plunge in American spending will be bad for the global economy as a whole, and HSBC will positively be pretentious. In 2005, HSBC pre-tax profits rose 5% to $10.64bn (?6bn) for the first six months of the year, largely on grow in consumer finance for growing consumer spending. At that moment they increase the interest rates that are why company faces lot of problem.

Last year, British employees held a strike involving 1,500 workers at HSBC branches in London. At its annual meeting, striking workers stand outside, handing out bags of nuts and saying that they are paid "Peanuts" while HSBC experiences record profits. Strikes such as this, above all in union-conscious Europe, are bad for image reasons and HSBC needs to take action to ensure that its workers are happy just as its customers are.

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With a trillion dollars in managed assets, taking over HSBC is a cracker's dream. HSBC has to remain on the front lines of safety and look after its customers, at the same time supportive them that online banking is safe. In August 2006, HSBC was accused, although it?s claimed airtight security; of having left its online customers open to a safety anomaly for two years without fixing. Researchers at Cambridge University claimed that any HSBC account could be broken into within nine attempts.

Last year, HSBC Group's CEO announced that HSBC received tens of thousands of email viruses a day and must spend great amounts of money to prevent these from causing systemized damage. As most banking is done on computers, even one virus could cripple HSBC.

Marketing strategy of HSBC

  1. Brand: Make HSBC and its hexagon symbol one of the world's leading brands for customer experience and corporate social responsibility.
  2. Personal Financial Services: Drive growth in key markets and through appropriate channels to make HSBC the strongest global player in personal financial services.
  3. Consumer Finance: Expand to arrive of this business to existing customers through a wider product range and to get into new markets.
  4. Commercial Banking: Make the most of HSBC international customer base through effective relationship management and improved product offerings in all the Group's markets.
  5. Corporate, Investment Banking and Markets: To hasten to progress or incidence of growth by enhancing capital markets and advisory capabilities straight focused on client service in defined sectors where HSBC has critical relevance and strength.
  6. Private Banking: Serve the Group's highest value personal clients around the world.
  7. People: Attract, develop and motivate HSBC people, rewarding success and rejecting poorness.
  8. TSR: fulfil HSBC TSR target by achieving strong aggressive performances in earnings per share growth and efficiency. HSBC target at anyhow they want to increase our per share growth.


HSBC has 140 years experience of china. It has 8500 offices in 86 Countries and Territories. HSBC, as a major bank, provides a wide range of services to support new businesses from initial idea to running the business. When it was born it has a small idea to serving local needs. Nowadays it welcome to all over the world customers. It has been using a huge technology to connect international market. It has a good strategy to make sufficient money. It provides the faster services than other financial organizations. HSBC know how to succeed in M&A organic and effective growth.


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