HSBC focuses on boosting digital platform

JOEFEL O. BANZON

HSBC Philippines is putting its focus on boosting its mobile banking platform or digital banking in the country.

“With the accelerating pace of digital banking, we see an increasing demand for digital or mobile solutions around savings, insurance and asset management services for retail customers; and in financing, transaction banking and trade services and solutions offered to corporates,” said HSBC Philippines president and chief executive officer (CEO) Wick Veloso.

The number of digital consumers in Southeast Asia is continuously growing, he stressed that the Philippines, with one of the youngest, most digitally connected populations, is in a unique position to capitalize on the digital transformation.

According to Veloso, boosting its digital platform is one of the top priorities of the HSBC.

While most financial transactions in the Philippines are still in cash, mobile use will continue to become the epicenter of digital banking as technology improves and consumers become more technology-savvy and increasingly use digital products/services for more convenient banking.

Veloso believes that the Philippines is on the right path toward digital transformation, given that both consumers and enterprises have adopted the digital lifestyle and digital strategies. More than half of the population, or 61 million, access the internet using the mobile device and E-commerce is becoming a big growth area with Filipino consumers.

“There is an ever-expanding need to meet the demands of hyper-connected customers; This is especially relevant in Philippines, and other emerging markets, where the digitally connected youth are demanding a tailored customer experience. Mobile is fast becoming the customers' first touch point and the objective is to move closer to clients' expectations and anticipate them - with the client becoming the center of the bank,” added Veloso.

The Filipinos are increasingly becoming digitally active and mobile-first also means there is a lot of opportunity to reach customers through digital platforms that offer simpler, faster and more convenient digital banking.

“By transforming our Digital channel to become a strong contributor to credit card acquisition, we have seen significant customer reaction to the digital application forms that are much simpler to use,” noted Kris Werner, HSBC Philippines Head of Retail Banking and Wealth Management.

Warner added that part of the re-designed customer journey is setting up a dedicated sales team within the Mobile Sales Force that perform electronic face-to-face Know Your Customer (KYC) procedure through video chat.

As a result, HSBC cards approved through digital channel have increased, and the digital channel now contributes around a quarter to total cards acquisition, from below five percent from previous year.

With this initiative, HSBC is strengthening its support to BSP's target to transform 20 percent of transactions in the Philippines to digital by 2020.

The bank also commits to work with key stakeholders to achieve a more holistic and inclusive strategy towards an advanced Philippine digital economy.