Does It Payoff Strategies Of Two Banking Giants

A Presentation on Comparative Study of HSBC and Citigroup Strategies Case : Does IT Payoff? Strategies of Two Banking Giants

HSBC strategies 1. • • • 2. •

Expand its global reach By more effectively unifying the company by country Distribution channel Customer group and global business Invest in infrastructure and transactional technologies To lower operating costs

HSBC strategies 3. To improve customer experiences in order to gain recognition as the best place to bank • •

Invested in infrastructure technologies Provide reliable services to customers

4. To develop its brand •

Develop hsbc.com as a brand to provide services to both retail customers and small and medium sized enterprises

HSBC strategies 5. Used two key measures to assess IT performance and system reliability a. Number of customer transactions processed b. Reliability and resilience of the groups systems 6. Expand business a. By focusing on deposit making and risk management b. Invest in infrastructure and strategic technology to facilitate business growth

HSBC strategies 7. a. To use technology more effectively to make it easier for customers to do business with the group b. Invested in infrastructural technology to provide multiple channels for customers to do business with the group 8. HSBC clearly allocates responsibility and delegates authority to managers at all levels in order to meet the above objectives

Citigroup strategies 1. Citigroup aims to penetrate into new markets and deepen their presence in existing markets around the world and has invested in transactional technology and strategic

2. To operate as one company by integrating its products and services and transferring expertise. It has invested in infrastructural technologies to make it easier for customers to access their services

Citigroup strategies 3. • To have more group-wide common systems and standards to ensure the best services to customers, no matter where they are or what services they want • Its investment in infrastructure and transactional technologies has enabled its global expansion 4. To maximize returns and growth opportunities through effective use of capital. It has used mergers and acquisitions as a way to penetrate into new markets and facilitate business growth

Citigroup strategies 5. To become a responsible organization,

respecting the interests of its customers, employees and its franchise. The group uses technology to provide customers with better services and lower its costs

Theoretical comparison of strategies adopted by both the banks Citigroup

HSBC •

Followed the strategies of “Managing for Value”

•

Launched a new strategic plan called “Managing for growth”

• • • • •

Expanding global research Enhancing Banking experience Developing Brand Instituting employment policies Using technology more effectively

•

Followed by “Diversified financial service model”

•

Divided into three major business groups i.e. Global Consumer Group, Global Wealth Management division, Citigroup, Alternative Investment

• • • •

Expanding distribution Transferring expertise Investing in people and technology Allocating capital to maximize return Embracing shared responsibilities

•

Comparison between IT strategies of both the banks •

HSBC Has a decentralized management approach to allow regional IT services to meet local needs, reflecting its slogan .the world’s local bank

•

Acquires and uses external resources, mainly through strategic alliances and offshoring

•

Aims to provide customers with multiple communication channels to make it easy to do business with the bank

•

Citigroup Has a centralized management approach to provide common and standard technological platforms for easy system integration and global expansion, reflecting its slogan under one umbrella

•

Acquires and uses external resources, mainly through mergers and acquisition

•

Aims to provide customers with a unified, group-wide, standard technological platform to make it easy to do business with the bank