HSBC to step up tech investment in plans for future growth
HSBC will “simplify” the business, invest billions in tech and turn around its US division as part of new chief executive John Flint’s growth plans.
The bank released a strategy update meant to get it “back into growth mode” yesterday, setting fresh financial targets that include keeping divi- dends at current levels and launching share buybacks.
Flint, who was appointed earlier this year, said: “After a period of restructuring, it is now time for HSBC to get back into growth mode.
“The existing strategy is working and provides a strong platform for future profitable growth. In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network.”
An eight-point plan shows the lender will look to boost growth across its Asia business, complete the ring-fencing of its UK bank, boost its share of the mortgage market and improve customer service.
It is also aiming to complete the turnaround of its US business and gain market share across its international network.
The chief executive assured that the bank’s plans to “simplify the organisation” did not require a cut in headcount, but stopped short of ruling out job cuts completely.
“The reality is technology is transforming our industry in quite unusual and rapid ways. We have to be alert to that,” Flint said.