Business customers represent a key source of HSBC’s revenue. In 2014, of HSBCs $18.9 bn reported profit before tax, $8 bn or 42.3% was driven by their commercial banking arm. HSBC is at risk of losing business customers because of the challenges facing its international network. For over 150 years, HSBC’s brick and mortar branches were gateways to international markets. Operating in all time zones, HSBC’s global network was a key differentiator among its competitors and the primary lure for business customers. However, the banking sector is experiencing a paradigm shift, and HSBC needs to recalibrate its global network in order to stay relevant in a fast-changing industry. Given the backdrop, HSBC must execute a multi-pronged approach to enhancing international connectivity for its business customers. Distinct elements such as technology, partnerships, and emerging markets make up the challenge for HSBC’s network and each must be addressed using unique strategies. The analysis of HSBC’s network through different perspectives helps to isolate key gaps to be addressed. This paper has reviewed HSBC’s current international network, what it means for business customers, and suggests various strategies to secure its relationships with business customers.

The Hong Kong and Shanghai Business Corporation, or HSBC, is a global financial institution with over 150 years of banking experience (HSBC Holdings, 2015c). Serving over 47 million customers, HSBC is known as “the world’s local bank” with 4,700 branches in 71 countries (HSBC Holdings, 2015c). Business owners of today expect a global bank such as HSBC to have international connectivity to support their business needs. International connectivity can be defined as HSBC’s ability to provide its business customers with access to both developed and developing markets, enabling them to participate in global growth opportunities (HSBC Holdings, 2015d). HSBC has identified its international network as a key differentiator from its competition and one it needs to protect. Furthermore, business customers are a significant revenue driver for HSBC and must be preserved through an enhanced international network.

The purpose of this paper is to explore ways HSBC can enhance its international network to benefit business customers. To answer this question, the research has been divided into four sections. The first will be to discuss the current state of HSBC’s network, customers, and business environment; when HSBC’s network status, customer’s preferences, and business landscape are known, better suggestions for improving interconnectivity can be offered. The second will detail the importance of expanding, reinforcing, and reinventing HSBC’s international network. This will be achieved by describing strategic partnerships, joint ventures, and capital investments in their network. The third will be about technology and its impact and will review the effects of mobile banking, demographic preferences, application software, Fintech, and innovation centers. The fourth section discusses the opportunities of emerging markets and why they are important for business customers.

However, these four sections are interconnected and do not exist in isolation. Technology is being used to bring new customers onboard in emerging markets and joint ventures are being forged to bring products to existing customers. While this interaction is important for HSBC’s interconnectivity for business customers, it is not the purpose of this paper. The assumption can be made that the material in each section will be used to help with international connectivity for business customers.

The research for this paper has come from both peer- and non-peer-reviewed reports, articles, journals, websites, annual reports, and commercial banking reports. News outlets such as The Financial Times, The Guardian, and Bloomberg played a key role in uncovering the current trends and activities of HSBC. In order to reinforce the reliability of this information, and the conclusions offered, information was compared with other reliable online sources

Business Model Innovation,International Network to Benefit Business Customers,Needs of Business Customers, Banking, a Changing Industry,Strategic Partnerships, Joint Ventures,Partnerships,Millennials and Banking, International Expansion,The Effects of Mobile Banking, Application Software and Cloud Computing