HSBC 2009 Annual Report Download - page 148

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Products and services / Other information > Funds under management
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network of offices and direct access to numerous
local clearing systems enhances its customers’ ability
to manage their cash efficiently on a global basis.
Deposits are attracted through current accounts and
savings products, in local and foreign currencies.
International trade: HSBC finances and
facilitates significant volumes of international trade,
under both open account terms and traditional trade
finance instruments. HSBC also provides
international factoring, commodity and insured
export finance, and forfaiting services. The Group
utilises its extensive international network to build
customer relationships at both ends of trade flows,
and maximises efficiency through expertise in
document checking and processing, and highly
automated systems.
Treasury and capital markets: Commercial
Banking customers are volume users of the Group’s
foreign exchange, derivatives and structured product
capabilities, including sophisticated currency and
interest rate options.
Commercial cards: HSBC offers commercial
card issuing and acquiring services. Commercial
card issuing helps customers enhance cash
management, improve cost control and streamline
purchasing processes. HSBC’s card acquiring
services enable merchants to accept credit and
debit card payments either in person or when the
cardholder is not present (e.g. over the internet or
by telephone).
Insurance: Through its bancassurance model,
HSBC offers a full range of commercial insurance
products and services to enable customers and
company owners to trade and grow safely. Products
include key person and life insurance, employee
benefits and a variety of commercial risks such as
property, liability, cargo and trade credit insurance.
These products are provided by HSBC as a
manufacturer or an intermediary utilising preferred
strategic partners. Upon the completion of the sale of
HSBC Insurance Brokers in 2010 a new partnership
will be launched with Marsh, the global insurance
broker, to provide intermediary services to HSBC’s
corporate customers.
Wealth management services: These include
advice and products related to savings and
investments provided to Commercial Banking
customers and their employees through HSBC’s
worldwide network, with clients being referred to
Premier and Private Banking where appropriate.
Investment banking: A small number of
Commercial Banking customers need corporate
finance and advisory support. These requirements
are serviced by the Group on a client-specific basis.
Delivery channels: HSBC deploys a full range
of delivery channels, including specific online and
direct banking offerings such as HSBCnet and
Business Internet Banking.
Global Banking and Markets
Global Banking and Markets provides tailored
financial solutions to major government, corporate
and institutional clients worldwide. Managed as a
global business, Global Banking and Markets
operates a long-term relationship management
approach to build a full understanding of clients’
financial requirements. Sectoral client service teams
comprising relationship managers and product
specialists develop financial solutions to meet
individual client needs. With dedicated offices in
over 62 countries and access to HSBC’s worldwide
presence and capabilities, this business serves
subsidiaries and offices of its clients on a global
basis.
Global Banking and Markets is managed as four
principal business lines: Global Markets, Global
Banking, Global Asset Management and Principal
Investments. This structure allows HSBC to focus on
relationships and sectors that best fit the Group’s
footprint and facilitates seamless delivery of HSBC’s
products and services to clients.
Global Markets
HSBC’s operations in Global Markets consist of
treasury and capital markets services for
supranationals, central banks, corporations,
institutional and private investors, financial
institutions and other market participants. Products
include:
• foreign exchange;
• currency, interest rate, bond, credit, equity and
other derivatives;
• government and non-government fixed income
and money market instruments;
• precious metals and exchange traded futures;
• equity services, including research, sales and
trading for institutional, corporate and private
clients and asset management services;
• distribution of capital markets instruments,
including debt, equity and structured products,
utilising HSBC’s global network; and
• securities services, where HSBC is one of the
world’s leading custodians providing custody