Change Management Final Version

HSBC Bank
Strategies and Future Challenges
Please, enter you full names here Julia, Elli, Aris, Zheng, Joseph,
Zauri Arnaniashvili
HSBC Bank Overview

A highly diversified business in terms of activity and geography, supporting a
unique market position;
The ability to generate robust and sustainable earnings even in difficult
markets;
Strong liquidity and capital positions;
By the mid-2016 the reported profit of HSBC: $9.7bn and Adjusted -$10.8bn
Risk Assets $1,082bn, decreased compared with the previous half year
basis (Dec 2015 - $1,103bn, Jun 2015 - $1,193bn);
Total assets, compared to 2015, by the mid-2016, already increased to
$2,608bn
HSBC Bank Existing

Problems
Data with be provided soon
HSBC Bank Change Methodology

and Models
The acceptance of a new
era(Bridges) Due the impact of the
crisis, some important changes have
been introduced: regulatory/greater
capital and funding
requirements/competitive
landscape/technology/population
Knowledge (ADKAR):
How to change: (long and short term
strategies)
Implement skills and behaviours:
Equipping employees to reinforce a
culture grounded in our values and
rewarding positive behaviours
Removing obstacles and

empowering action(Kotters)
by reducing group risk-weighted
assets and optimizing global
network
Supporting, participating and

engaging the change (Adkar):
Reinforcing responsibility and
accountability and fighting financial crime
Developing a vision and

strategy (Kotters): Restructure of
the group to make it simpler and
leaner. Generating a consistent global
structure, increasing efficiency and
responsiveness
Reinforcement (Proscis): The performance

in 2015 demonstrate the strength, targeting
investment, prudent leading and our
diversified universal baking model helped
us to achieve revenue growth in a difficult
market environment whilst reducing risk
weighted asses.
Establishing sense of urgency

(Kotters) After the banks problems
with investigations for money laundering
in 2012,they got back on track by 2015
Forming a powerful guiding and

coalition (Kotters or Buchanan
& McCalman) persuading and
gaining recruits (Conversion layer)
using the international experience of
other groups in leading banking
Awareness (Proscis ADKAR) for

future changes regarding brexit.
Building scenarios and getting ready
to respond
Attributes of HSBC Change

Agent
Leadership
Optimistic
Respect the others
Know the Priority
Organizational Culture
Open to differences
Responsible for society
Empowering people
Possible Influencing Factors

Internally Generated Change
Management initiative to reduce cost and risk
Competitive strength in Asia
Driving Forces
Development Asias business
Middles class economic growth
Externally Generated Change

UK referendum to leave EU
Sustainable level of Economic Growth in China
Demand for credit for investment slowed
Equity market activity was also markedly lower, particularly in Hong Kong
HSBC Bank
Strategy Implementation
(External Factors)
Expand in Asian region and become a number one bank in the world through:
Resizing and simplifying the group:

Reducing the Group risk-weighted assets (RWAs) by circa $290bn;
Optimization of the Global Network;
Rebuilding the NAFTA region profitability;
Setting up UK ring-fenced bank;
Delivering $4.5bn-5.0bn cost saving
Actions to redeploy capital and invest:
Deliver growth above GDP from international network;

Asia prioritised and accelerated;
Grow business from renminbi internationalization
Global standards Safeguarding against financial crime
o Domiciling
HSBC Bank
(External Factors)
HSBC bank is being successfully achieving the main strategy to get to the
Asian Financial Market.
To analyse the success, we have used the PESTEL/SWOT method to assess

the factors:
o Political Factors - no exact issues or threats:

HSBC is the first bank to facilitate overseas institutional investment into the China interbank
bond market;
In the ASEAN region, the HSBC has developed a new automated statutory payments
platform for companies across the region
o Economical Factors:
Increasing the middle-class population in Asia by 2020-2050;
NAFTA expansion perspective;
Increasing the share of adjusted PBT in Asia
HSBC Bank
(External Factors)
oSocial Factors:
Customer oriented system has enabled to increase the interest towards the bank
oTechnological Factors:
Offering the simplified approach to shorten the time of service;
Improving efficiency and customer experience through process enhancements

and use of digital platforms
oLegal:
China banking restrictions relaxed: New rules further open banking sector to
foreign investors
Banking and public sectors have taken initiatives to promote cross-border

banking activities
HSBC Bank
(External Factors)
oOpportunities:
Developing international Network;
Investing in Wealth Management;
Growing the mid-class population in Asian region (2020-2050);
Growth retail business
oThreats:
Rapid world changes;
Ongoing volatility and stress emerging markets, including China
Cyber threat and unauthorised access to systems;
Third-party risk management
HSBC Bank
(Internal Factors)
oStrengths:
Universal Banking Model;
Financially Strong;
Strong liquidity;
Unrivalled global presence
oWeaknesses:
Vulnerable to regulatory, governance and internal control risks due to group size
and complexity;
Change in the risk appetite of the group (got conservative risk profile)
Conclusion
Considering the approaches of resolving the existing problems
and fulfill ongoing and future strategies, the HSBC Bank has fair
possibility to expand into the Chinese and ASEAN Market;
Strategies concerned the NAFTA/ASEAN/China expansion will
help the bank to increase more total asset turnover.
Digitalized system and new approaches into the service standards
can keep the bank more updated and flexible toward the ongoing
rapid world changes.
Thanks for attention

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HSBC Bank

Strategies and Future Challenges

HSBC Bank Overview

HSBC Bank Existing

Data with be provided soon

HSBC Bank Change Methodology

Removing obstacles and

Supporting, participating and

Developing a vision and

Reinforcement (Proscis): The performance

Establishing sense of urgency

Forming a powerful guiding and

Awareness (Proscis ADKAR) for

Attributes of HSBC Change

Possible Influencing Factors

Externally Generated Change

Resizing and simplifying the group:

Deliver growth above GDP from international network;

To analyse the success, we have used the PESTEL/SWOT method to assess

o Political Factors - no exact issues or threats:

Increasing the middle-class population in Asia by 2020-2050;

NAFTA expansion perspective;

Increasing the share of adjusted PBT in Asia

Offering the simplified approach to shorten the time of service;

Improving efficiency and customer experience through process enhancements

Banking and public sectors have taken initiatives to promote cross-border

Developing international Network;

Investing in Wealth Management;

Growing the mid-class population in Asian region (2020-2050);

Growth retail business

Rapid world changes;

Ongoing volatility and stress emerging markets, including China

Cyber threat and unauthorised access to systems;

Third-party risk management

Universal Banking Model;

Unrivalled global presence

Thanks for attention

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