HSBC 2001 Annual Report Download - page 15

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credit card and gold Visa credit card were removed
in 2000 and charges to customers for cash machine
withdrawals on debit cards from UK machines
within the LINK network were removed on 1
January 2001.
In 1989, HSBC Bank plc launched First Direct,
then the United Kingdom’ s first full banking service
by telephone, 24 hours a day, 365 days a year. First
Direct has continued to grow in 2001 attracting
75,000 new customers. Its e-channel services have
attracted around 40 per cent of First Direct’s
customers online by end of 2001 and 125,000 new
customers logged onto its internet banking service in
2001. It also introduced online share dealing and
travel, motor and home insurance. In January 2001,
the bank launched ‘capital’ , which offers a
telephone-based Independent Financial Advice
service and online and telephone access to carefully
selected investment and protection products. In July
2001, First Direct launched ‘smartmortgage’ which
links customer savings, cheque and home loan
accounts.
HSBC Bank plc’s commercial banking operation
offers an extensive range of services including
current accounts, deposits, lending, asset finance and
leasing, trade services, equity finance, cross-border
payments and cash management. The bank remains
committed to serving its commercial customers
through the branch network, complemented by
internet and telephone banking. Business telephone
banking registrations increased by 45 per cent on
2000 and business internet banking was launched in
January 2002, offering customers easier access to
banking services and products. HSBC continues to
experience strong demand for Hexagon, its world-
leading electronic banking service for business
customers, with over 56,000 users.
HSBC Bank plc has a traditional strength in
providing trade and international banking services,
including bespoke finance and technology-based
solutions and has seen average balance growth of 13
per cent.
HSBC Bank plc’s wide range of expertise helps
business owners and directors manage their business
and personal wealth efficiently through to retirement
and HSBC Bank plc also offers business protection
products such as key man insurance and partnership
protection. In April 2001, HSBC Bank plc launched
its stakeholder pension and is now one of the largest
providers in the United Kingdom with a 6.5 per cent
market share.
HSBC Bank plc manages corporate and
institutional clients through a number of specialist
industry groups. Its core banking services have been
aligned with investment banking products and
activities are co-ordinated across HSBC, making
maximum use of its international network to win
important cross-border business.
HSBC Bank plc’s major dealing room in London
serves as the hub for HSBC’s European network of
treasury and capital markets operations. It delivers a
high quality tailored service to HSBC’s corporate,
commercial and institutional clients. The major
product areas are money markets, foreign exchange
and fixed income. These are complemented by
activities in exchange traded futures and through
HSBC Bank USA Inc. in precious metals and
banknotes.
The promotion of the HSBC brand, investment
in European infrastructure and acquisitions in Europe
have opened new possibilities for core banking
business and the provision of private banking and
wealth management services to executives of
institutional clients. New products and internet-based
offerings are also being developed to enhance the
bank’s service to customers. This close working in
support of the client has helped result in a steady
flow of new business opportunities during a period
when mergers and acquisition activity was much
reduced. As an industry leader, HSBC Bank plc has
been among the first banks to pilot Continuous
Linked Settlement services in 2001, which when
fully launched in 2002, will significantly reduce
foreign exchange risk.
Within institutional banking, HSBC Bank plc’s
global custody division offers comprehensive global,
regional European and UK sub-custodian services in
70 markets worldwide. Assets under custody were
over US$1,000 billion at 31 December 2001.
HSBC is proposing to make a change in legal
structure by transferring the investment banking
business of HSBC Investment Bank plc to HSBC
Bank plc. A private bill was submitted to Parliament
in November 2001 to facilitate the required legal
changes. The overall aim of the restructuring is to
align investment banking activities with those of
commercial and corporate banking, a key strategic
aim for HSBC.