MANAMA: HSBC in Bahrain is launching wealth management solutions for retail customers this month, as part of an ongoing investment in growth in the country, the GDN has learnt exclusively.
The new products are part of an ongoing investment in growth in the country, where the bank has been providing a full suite of financial services for 77-years, said HSBC chief executive for Bahrain Chris Russell.
The official said there has been an acceleration in efforts to digitise at scale as part of a global strategy as a result of Covid-19, which also allowed to test its resilience built over the years.
“We are pleased that we were able to offer uninterrupted services and support to all customers throughout the pandemic,” he added.
In May this year, the bank achieved 100 per cent digitalisation of services for its corporate customers and the uptake is ahead of target, added Mr Russell.
“This transition to digital will future-proof their business and we’re looking forward to all our customers benefiting from the speed, visibility and safety of HSBCnet – our suite of online tools.”
Hailing the Central Bank of Bahrain (CBB) for leading in many unique initiatives in the region, the official said the bank is working closely with the regulator to implement breakthroughs like open banking.
Last October, Bahrain became the first country in the world to issue open banking guidelines that include Islamic finance.
The Bahrain Open Banking Framework sets the terms for the sharing of financial information electronically, securely, and only under conditions that customers agree to.
Mr Russell said it was important for HSBC to contribute to “the kingdom’s fintech aspirations”.
“We are looking at how we can leverage activities in places such as Singapore where we have leadership and apply some of that knowledge in Bahrain, such as sandbox platforms to provide access to fintechs. HSBC’s global expertise in many tech-driven trends gives us the opportunity to be a thought leader and help to develop ideas.”
When asked about how legacy banks like HSBC are looking at fintechs disrupting payments and remittances, the official said while the bank already has HSBCnet which enables clients to “access cash anywhere around the world and can give them the opportunity to manage their cash effectively,” at the forefront of HSBC’s purpose is “providing global solutions for payments.”
On the impact of Covid-19, he said the bank’s customers continue to face a number of challenges and as there’s “no rush to expand on capital expenditure there is an overall impact on lending”.
The lender is now focusing on helping its customers to improve efficiency, specifically as regards working capital.
“We are helping our customers in adapting and adjusting to create better efficiency in utilising working capital,” said Mr Russell.
The official is upbeat about business outlook in the second half of the year despite the unwinding of banking-related Covid-19 relaxations.
“We are starting to see some positive changes over the last months and we are well-positioned to make the best of what is on offer. We expect to start seeing definite improvements in Q4 given the unutilised lending capacity,” asserted Mr Russell.
Citing inflows of foreign direct investment (FDI) as an example, he said the bank with its global network is best positioned to partner the investment promotion agency – the Economic Development Board.
“We can leverage relationships that we have offshore with people that are looking to invest and establish an operation in Bahrain.
“Given Bahrain’s prominence and economic profile, the country attracts FDI easily – $885m flowed into the kingdom in 2020 through new companies setting up and expanding their operations,” the official noted.
In January 2021, HSBC announced it is aiming to provide up to $1 trillion of financing and investment globally by 2030 to support customers in their transition to lower carbon emissions.
The bank also announced the formation of a dedicated Sustainable and Transition Finance Team in the Middle East, North Africa and Turkey aimed at helping institutions, corporates and individuals transition to a more sustainable economy.
The division will work closely with HSBC’s recently-launched global environmental, social and governance (ESG) solutions team.
The bank’s Bahrain business head believes ESG is not just a buzzword, as it lies at heart of its future growth strategy.
“HSBC announced its climate ambitions in Oct 2020 that included our own operations to be net-zero by 2030, and align our financed emissions to the Paris agreement by 2050. We are committed to supporting our portfolio of customers in the transition, with an aim to deploy $750m to $1bn of sustainable financing and investment over the next 10 years,” said Mr Russell.
In 2020, the bank reported a six-fold increase in its sustainable and transition finance activity in the Middle East over 2019, with a number of innovative deals coming to market.
“In Bahrain, that kicked off with a number of initiatives for our operations, starting with our solar panel project to reduce 10pc energy consumption in our head office in Seef and even greater implementation of the same in the Adliya branch in the days ahead,” he said.
Mr Russell asserted that this will be followed by a number of projects to further expand the use of solar, eliminate the use of plastic on premises, limit the use of paper, and save more water with effective use of local resources.
avinash@gdn.com.bh
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