Technology-HSBC Case Study Essay Example for Free

Technology-HSBC Case Study Essay How has the company chosen to improve its knowledge of customers and therefore its decision making? Analyze the management, organization, and technology dimensions of the solution. HSBC, as with other banks, took advantage of many poor consumers looking to own their own home. These consumers had low credit scores, are in default or have low income, which means there was a higher probability of them not paying back the loan. These banks took advantage by not explaining the entire process of how the amount will double and the interest rate will become adjustable after a couple years. This led to many subprime mortgage loan holders to not meet payments and eventually lose their home. Because of this HSBC was one of the first banks â€Å"announce a billion dollar write-off linked to its exposure to subprime mortgages. † (Modell) HSBC improved one way by advancing their technology. Data is collected and sent to one team of specialized individuals who make sure that all is correct for approval. HSBC also implemented a new process using Experian-Scorex decision support software. This new software will help HSBC with their decision making process. It â€Å"allows HSBC to identify the value of each customer and create tailored product packages. † (Finextra) George Lennox, a senior manager at HSBC, stated â€Å"Strategy Management will undoubtedly become an integral part of our business and we expect that it will make more than 50 billion customer decisions annually for us as we roll it out across our global business. (Finextra) They have also decided that customer satisfaction and building trust is more important than profit. Did HSBC choose the best solution? Explain your answer. HSBC chose a great solution. They allowed almost anyone to obtain a loan as long as they met some requirements. By using the new strategy management software they implemented, they will be able to make sure that each customer looking for services are eligible and able to keep the services. Explore HSBC . Does this Web site provide opportunities for HSBC to gather data about its customers? Describe the customer data collected at the Web site and explain how that data can be used to improve its business performance. Would you redesign the Web site to increase interactions with customers? I explored HSBCPremier, where they gave lots of information on how I can save money for my family, for example a college fund or saving for my child’s first car. HSBC requests lots of information mostly general such as name, date of birth, social security number and driver’s license number. But they also request other information such as any current loans or mortgages, and for instant funding you need to provide them with your current banking information. By collecting all this information, it gives HSBC the right tools to be able to assist customers with great satisfaction. HSBC has requirements linked to all their services. They want to service customers in the best way so they use the information collected to give customers the best service. I would not redesign the entire website. It seems pretty clear to me that not only do they give much information on each product and service they provide, but you are able to contact a representative who will clearly interpret anything you don’t understand. But one feature that I would add is in the â€Å"contact us† section, an option to chat with a live operator. This will allow customers to chat online with a representative about services without having to call on phone or go to a location. HSBC had decision making tools in place prior to the subprime meltdown. Why would you think they missed or ignored the potential catastrophic consequences that became reality? What added value would the new Experian-Scorex software provide? HSBC was looking to expand in the U. S. With the rise of consumers looking to become homeowners, as a business your first instinct is to get in the game and increase profits. I believe that HSBC only wanted to grow and help customers, but due to not being psychics and knowing that the market would crash and people would lose jobs and not be able to pay back loans, they lost in that game. When you have lenders not collecting the right information on consumers to help predict if they are able to pay the loan or not and not explaining the loan correctly to consumers, it causes conflicts. Consumers did not really understand the loans; they just knew they would become homeowners. Subprime loans are the worst, to me. Who wants to pay back 10 times what their home is actually worth? The new Experian-Scorex software will provide great value to HSBC’s strategy management. This new system will collect information and will help HSBC in their credit decisions. â€Å"George Lennox, Senior Manager, Group Credit and Risk at HSBC: As one of the worlds leading financial organizations, it is important to us that we make use of leading edge decision support technology. † (Experian) By implementing this new technology, HSBC will better assist their new and existing customers.