What are the risks and benefits of HSBC’s positioning itself as the “World’s Local Bank”?
Answers
Answer:
Answer 1: The position such as a World’s local bank would help HSBC to attract huge customers in different global markets that would also enhance its financial earnings and related strength and ensure its financial success in the banking industry. But, there are several risks with this position to HSBC because it would require huge financial budgets to conduct financial activities in a global market that may reduce its profitability. For example, HSBC gives the smart card to students with no-frills credit that attracts middle and poor students to consume its products and services, but it also causes the negative impacts over the profitability of HSBC in a respective manner. Due to the differences in culture, HSBC could face the negative and irrespective behavior from the side of consumers because of the gap between social classes. Answer 2: The most recent campaign of HSBC is resonating with its target audiences because the campaign provides the information to the customers about the differences of its financial services in the comparison of...
the risks of hsbc's is the demographics of different countries customers that may buy its services from it