A Case Study of HSBC Holdings PLC


Discuss the impact of internet banking on customer satisfaction in the UK.

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In the continuous improvements in technology and continuous development in competition market in the business world it has become very crucial on the organizational part to make an effective utilization of latest technology for giving effective services to their clients and to build a pool of convinced & happy customers. Moreover to actualize the latest technology in the working environment of the company facilitates the business to make its stand in the competition market and acquire supportable competitive leverage in the business world. Nowadays it is noticed that organizations are concerned with the products and sale to clients in the technology oriented market. Today organization’s only requirement is to provide the customer’s needs and wants with best quality of the service. Customer Service is now a day’s very important for the organization and it can only achieved with the help of providing best services to the clients. In order to achieve this best internet technology services is required.

In this new era with the help of internet the companies can work a lot and this internet facility help the business in gaining success. Internet provides the best event to the banking world in order to provide their services to client. Internet is used in transmission of the approach of the organization in the way they provide and sell their services and goods to client. Electronic transfer of fund, online shopping, electronic market, Supply chain management and electronic exchange of data are some of the work facility provided by the internet world to their clients. Internet Banking gives many market scope and inventive services and stock for both the bank and clients. Internet banking in the global world helps the customer to transfer their funds, help them in opening of new account, help them to manage their funds in the banks and help them to pay their bill of every nature from their online bank account. Internet Banking or online banking services is obtained by the banking world with the use of electronic commerce. With the use of online Internet Banking, bank providing banking and financial services by pervasive type, Internet banking, self-moving teller machine, Mobile banking and telephone banking are given by the banking world to their users through online process. Hanna, N. and Boyson, S. (1993).

Acceptance of the online banking by bank is useful for the customer of the bank and it also has some demerits. The most important demerits of online banking or internet banking are security and protection of the financial information of the clients or customers. With the online banking, internet banking or systems or process business has to enhance their quality of services and absorb more clients, satisfaction of clients and loyalty of clients also increased a lot.

Thus the investigator in order to achieve full consideration of the advantage of online banking in accounting concentrates upon the activity of HSBC Holding Plc, the second largest bank in the world is the Multinational banking and financial services in the world. HSBC Holding Plc is having its headquarter in UK (United Kingdom)London . Larpsiri, R. et al. (2005)

A) Background

Counteraction in a global market has enhanced because of  liberalism and global action, and now it is simple for the business world to  challenge within the global market. As the number of customer is increasing day by day in the international market better quality of services is vital for attracting the customer in the global markets with cheap rates. Internet world is the only way with the help of which bank can attract more customer and more profits. In this global world or the world of new technology process of delivering services to the clients are changed in the large number and moreover it increased the delivery process so quickly and effectively, moderations, giving best services and having better control, taking very less time in any doing any transaction and neglecting human contact is the way to adopt internet banking facility by the consumers. Moreover it is very simpler to compare and identify with the other challenging services in relation to utilities.

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The objective of banking world is to provide better and quality services to their global customers and with the help of providing best services bank can retain more clients to their world in the permanent basis. Now all the bank of the world needs to spend more amount in making their internet banking more easily available to the internet world. Alam, M. & Dangarwala, D. (2011) Today the only aim of the bank is to provide unique services to their clients to acquire new customers and to retain the existing customers and satisfy them in every manner and this can only be done with the help of best e-banking or online banking facility.

Moreover many banking financial business are utilizing the latest internet technology in order to provide best quality of services and through this way they manage the best customer relationship. Giving the best quality of assistance to the client, business world is achieving more clients satisfaction and because of it the business world gain loyal clients from the global market. The finanacial institution like bank provide identical services and the stuff to the customers and with the use of this services business organization has to upgrade assistance quality which is important to live in the global markets for long time. REUTERS. (Tuesday, 18 Jun 2013)

Thus we can conclude thst the satisfaction of the customers is the main aim for the banking world and this is only done if the banking sector provide best quality of services to the clients as compare gto other business sector or financial institution. Thus in order to balance the best relationship between customer and bank best online services is very much required is provide to the clients. E-banking  by opening of bank account in order to acquire more profits and more customers. Now it is observe that  more than 54% of customer or users of internet banking are using this facility globally in order to achieve higher customer satisfaction. Hanna, N. and Boyson, S. (1993)

B) Information of Research trouble

Today in this world it is observe that Internet technology plays the most important role with the help of Internet technology bank started the online internet banking services to their customers or users. Thus it is observed that online internet banking is the back bone of the banking or finance world. Thus the improvement of Internet Technology has to switch the present market scope to provide best services.The analysis is placed upon the advantage of the internet banking in opening of bank account. Thus, security and privacy are the crucial point and except from them the clients have many expectations and requirements in regard to their services. Apart from these issues many bank gives services of  different types that are lifted issues in front of the financial institution due to absence of straight contact among the banks and their clients. Imparting of the high quality services through internet has fast changed. In order to improve best services through online internet banking system banks are hang unseen to their clients that presents problems in front of clients. Therefore banks need to figure out the needs of their respected clients or users and their assumption that help the financial institution in order to analyze factors that may affect clients goal through internet. This is very crucial factors and banking world needs to modify their scope though online internet banking in the near future. Absence of the proper online banking services are the major point of discussion of internet banking. Absence of proper awareness about the internet banking facility and proper infrastructure are also making problems in the eyes of the users.

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The financial assets of fair value is accepted as a security of collaterall nature that hese group is allowable to sell or pledge in the time of not presenting of defaults. The fair value of such collateral  that has been pledge or sold around $ 79844 million. These specified group is required to provide equal securities. This type of transaction is held under various terms that will used as customery and usual nature to standard type of securities reverse and borrowing repurchase types of scheme This type of scheme is issued by the HSBC Holding Plc  for the benefits of customers and it is also helpful for the customers to come and invest in the bank of these types so that it will attrack global customers only if they will provide great services to the clients and make them happy in all aspects of the money related matters is considered. This security is returns to the customer at the end of the transaction.  The assets are pledged with the banks in various manner for the satisfaction of the customer and the banks in full satisfaction.  Pledging is the rules which the bank has to do before granting loan to the customer which is separated all over the world , because if it is not done then it will of problem to the bank which will give loan and in case they will not get refund from the client, this collateral security also satisfies the bank providing the security to the bank

C)  Objectives

The only aim of the analysis is to find out and understand the benefit of the internet banking on their  clients  satisfaction.

With the help of proper analysis, knowledge also determine the importance of the internet technology or online banking on clients  and how the internet banking facility enhanced the customer and quality of the services attract the customers. Thus, as per the goal, the researcher has to provide the aim of internet banking

HSBC is the biggest  financial association in the world by considering its assets and it also has a presence in retail banking in almost every corner of the  world. Initially it was framed as a bank to enhance trade and commerce between china and Europe almost  150 years ago. As the china economy has grown it gives the platform to the HSBC to expand further to attain its objectives.  In  2012, the bank has come across with the scrutiny regulatory that has the probable to charge the bank billions of dollars and check future financial services and offerings of products.

Internationally prepared report on HSBC Holdings Plc provides you with the strategic inquiry of the business of the organization,  examining the performance of the company in the market and in the world business marketThese objectives are a) inspection of the literature i.e. to resolve the advantage of internet banking on clients satisfaction noted to large number of account openings in the text of HSBC Holdings Plc. To boost and figure out  the approach of the clients towards online internet banking.To identify the factors that motivate customers to adopt the services provided through internet banking in the context of HSBC Holdings Plc.

D) Importance

The importance of the analysis is to figure out the significance of the online internet banking. This analysis also helps the preparer to figure out the significance of the clients peace of mind.  How online banking systems benefits the clients in order to provide them services and products an effective manner is determined with the use of this research paper. The crucial importance of the online internet banking is to affluence of use, activity, high performance, capability and secured available.

In every big organization both the company and  economy market share their business data which gives the detailed structure of the financial position of the company (HSBC Holdings Plc),   at the same time  deep analysis of the qualitative structure of the financial structure will help you to know the brand plan of action  and growth structure of the HSBC Holdings Plc.  We generally take help of the US dollar as our currency bloc offering currency linked to it from the higher currency bloc where we do business transaction and found our business  position unless otherwise explained , The data provided with in this documents has been prepared  keeping in  mind the  formulas of IFRS.

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HSBC Holding Plc is considered as one of the best banking business and financial institution. With the overall established offices in both the developing sector and upcoming sector, we plan to be where the development is, make inter co-operation between clients to various upcoming opportunities, helping the business to flourish and benefits to enhance and finally helping customer to complete their wish and hopes and to complete their ambitions. HSBC Holding Plc is one of the most effective services providers which provide the best service globally with the help of their most efficient employee of the company. HSBC Holding Plc is the financial organization where the company has to meet his target with all the applied laws and regulation. We provide around  51 billion client both on national and international level. RBWM ( Retail Banking and Wealth Management) global markets and banking, commercial banking. The networking systems of the HSBC Holding Plc covers both national and international countries which counts about 73 countries and various territories in Europe, middle east and Africa, Asia, Latin America and North America. This banking sector is listed in various stock exchanges like New York, London, Hong Kong and Bermuda. The Share holders of these financial institution is flourished around 127 countries and around 216000 shareholders. HSBC Holding Plc has the true balance sheet which come in front of the people, no mal practices is taking place in these banking sectors, and prompt services is provided to the client in the very short span of time.

Inspection of the article

1 Introduction

Internet banking can be explained as a the process that explains the banking action such as payment of various bills, investigating account explanation, transfer of any kind of funds, pay back of loan and pledge completed through safe internet operations. Once more it has been noticed that online function of internet banking is so famous and surrounded by the young public who are consider upon as tech young persons, but in the few years back its demand has enhanced to a new level. This is due to the truth that it contribute to promote both the public and the bank with numerous advantages and benefits. In additions the studies regulated by some famous people admit the truth that online internet banking in the last few years has improved the  clarity in many banks and various other financial institutions and just like that it has provided them to improve the online banking practice on the part of the consumers and as well as the part of the service givers and thus kind of the service given can be consider upon as one of the utmost important matter in the situations of the services given by the banks with the help of  online process banking system. In such a way with the frequent use of online internet banking the banks have been advantageous in acquring ability in the working ability of the banking people, the working ability of the bank as a together with improving the banking work ability experience of the consumers. Hadden, R. & Whalley, A., (2002).

HSBC is the biggest  financial association in the world by considering its assets and it also has a presence in retail banking in almost every corner of the  world. Initially it was framed as a bank to enhance trade and commerce between china and Europe almost  150 years ago. As the china economy has grown it gives the platform to the HSBC to expand further to attain its objectives.  In  2012, the bank has come across with the scrutiny regulatory that has the probable to charge the bank billions of dollars and check future financial services and offerings of products.

Internationally prepared report on HSBC Holdings Plc provides you with the strategic inquiry of the business of the organization, examining the performance of the company in the market and in the world business market.

Data Analysis

In every big organization both the company and  economy market share their business data which gives the detailed structure of the financial position of the company (HSBC Holdings Plc),   at the same time  deep analysis of the qualitative structure of the financial structure will help you to know the brand plan of action  and growth structure of the HSBC Holdings Plc.  Buys, M., & Brown, I. (2004).We generally take help of the US dollar as our currency bloc offering currency linked to it from the higher currency bloc where we do business transaction and found our business  position unless otherwise explained , The data provided with in this documents has been prepared  keeping in  mind the  formulas of IFRS.

The strategic report 2014, becomes the part of the Annual Report and annual accounts of the year 2014 for HSBC Holdings Plc and it is not the statutory report’s of the group.  This statutory report is not inclusive the Director’s report and due to lack of full information to grant as full an reasoning  of the outcome and the state of affairs of the finance group and its arrangements and policies regarding  remuneration of the directors which will be provided  with the whole annual accounts of the company for the year 2014 and it and  also it can shown in form 20F filed with SEC (Securities and exchange Commission) and it can also be seen from the HSBC website.

In the month of June, 2014 the HSBC Life (UK) Limited the indirect wholly owned subsidiary accepted to sell its UK pensions business for  £4.2 billion to Swiss Re. In the month of February 2015, the ICIJ ( International Consortium of Investigative Journalists) gives us the information about the operation of business activities of HSBC Holdings Plc under the name Swiss leaks which is based on the hacked account records of the whistleblower. The ICIJ ( International Consortium of Investigative Journalists) claims that the profit in the bank arises from the involvement of the corrupted politicians, tax evaders, dictators,  blood diamond dealers, dealers of arms and various other clients.

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Upstanding Issues

In order to handle the research in an effective and efficient way, preparer has to imply some elevated regulations and rules.  An upstanding discussion benefits the preparer to avert the matter and control the regulations and rules in the investigation paper. Problems and matter are straightly related with the investigation methodology.  Along these lines the investigator has to take the unique attention in an basic stage of the investigation methodology i.e. investigation design. According to the belief guidelines and regulations, investigator will not adopt the facts and data (that is collected by the investigator during the collections of facts procedures) for forthcoming or trading purpose. Along these lines the investigator should take the help of the data and facts for future purpose. The investigator has to control the upstanding discussion in order to accumulate important facts and data.

Securitization is very necessary for the Banking sector to flourish, these group utilize the structured organization to securitize the clients advances and loans that it has developed in order to expand its sources of financing for asset developing and for capital capability purposes. The advances and loans are relocated by the group to the structured organization for cash, and the structured organization releases debt securities to funding the investors and do cash purchase. Group managed funds has developed with the number of money market and non- money market funding sectors. Where these group managed funds is prepared to be acting as base in a certain degree than agent in its role as investing manager, these group of managed funds will control and thus consolidate the funds of these levels.In the normal course of business there are number of group who enters in the transaction which includes the structure financial transaction and assets where it has the control of the  well performed entity. Onay, C. & Ozsoz, E. (2001)

Internet Banking Technology and its Adaptation

The studies done by the various analyst in year 2008, has given the fact that effect of the consumers in  accepting online internet banking technology can be defined as theoretical analysis which is in relation to the assumption, attitude and feelings of the consumers while enjoying the services presented by the latest technology. In relation to these an identified spread of inventions  is used to analyzing the rate at which an inventions is adopted in this society.

Anticipated value of Customers in online banking

Concentrating upon the assumption of the consumers towards online internet banking, Buys and Brown, (2004) calculated the truth of online internet banking has endure  extensively  accepted across the global world and the very simple action following which an public can check  his whole account transaction, make his online payments from anywhere and can transfer funds at any point of time among his accounts had compel to the fame of the service between the individuals who suffers time barriers to visit the various bank branches in order to make such transactions effective.  On the other side, along with this transactional countenance, online internet banking also helps the customers with various not effective transactional countenance and these features present to be very easy on the part of the consumers. Thus along with these calculating the assumption of the consumers; various online advantages that were analyzed involve the following:

  • Accessibility
  • Moveability
  • Assistance

Accessibility: From the view point of the customers it has been analyzed that online internet banking gives quick convenience to the consumers in bringing their work transactions and help them in making  their payoff from their work place or  their house simply by the clicking a button. In addition to these they can also track their various accounts over internet without going to the various branches of bank and stand in a queue (Ngurukie, 2007). Other wide range of services include making inquiries regarding the interest rates of the financial services, updating of account, etc. and thus the customers perceive online internet banking as much more easy way on their part in comparison to the traditional way of online internet banking.

Moveability: Enhancements in latest technology has helped in almost all the sectors and thus within the recent few years, it has been seen that online internet banking has make its position in the form of mobile and other helpful  internet banking and this helps in giving unlimited mobility to the customers.

Assistance: With the upgradation  in few technology it has become acutely helpful on the part of the consumers as well as on the side of the various banks to hold the wide range of multiple services and which could very easily and in simple way be analyzed by the consumers by logging in the website from any parts of the world and at any time. The variety of services that are given involve loan calculators, business forecasting, trading in equity, analyzing and budgeting tools and moreover in addition to these the Various banks also helps the customers with online preparation of various data required and various forms to be filled with. Thus ease of access to various services is perceived as one of the most important factors that attract the customers towards internet banking.

Complex activity

The consumers very often comes across the situation that some transaction take place in the daily life which cannot be get through over internet and thus it needs the personal assistance of the banker. So in this case online internet banking remains behind and in addition to these it becomes necessary on the part of the customers to visit the bank branches

Impact of Internet Banking

Online Internet banking is a channel of providing various types of helps to its every customer, it is small process which is introduced by the banking systems to provide help to the customers by sitting at any places in the world. This online Internet banking is both informative and transactional. While discussing the advantage of the internet banking in various types of industries it has been observed that it has been implied to throw limitation of time, distance of places and communication along with these and trying to make the world the global market of internet banking. The analysis was conducted with the aim to analyse the final satisfaction of the customers with the best quality of services. Also, as the customers assumptions on all amit related with each other. Cameron, R. (2009). A analytical question was prepared to accumulate the data in relation to the consumer  viewpoint on online internet banking provider. The information collected contains the personal data of the individual, assumptions of the consumers on all the aspects of the service quality. To acquire the reality of the objective truth, correlation was acquired. The analysis brought the clearity that the assumption of the consumers on the quality of the services are much more higher than the actual performance of the banks.

  • This process of online internet banking is a very safe procedure and it is secure also. But the point of consideration is that the site which public is using must have authentic certificate which will help you to know that the site is free from cyber crimes that usually steal the personal and financial information of the clients. Lin, H.-J. (2004)
  • The best thing about this system is that the online internet banking has 24 hours access. Now, every public can do any type of their work with the bank at any point of time.If the bank closes at their usual time then one can perform the work with the help of online banking. It is very convenient alternative for the public in every parts of the world. Arnold, M. (April 28, 2015 3:35 am).
  • Public can access their bank account practically from anywhere. If anyone is on the business related trip they can also keep watch on their money and can track the financial information regardless their location and can satisfy themselves from anywhere.
  • Doing business online is usually faster than going physically in the bank for the transaction. It is very time consuming for the public to go and do business in the bank after standing in the long queue especially on the day of payments. But with the help of online procedure there are no such procedures, you can access your account from anywhere at any time instantly.
  • Loan facility can also be done with the help of online banking at a click only which is otherwise very difficult for the normal people to go in the bank and ask them for loan after standing in the queue for unlimited time. Rogers, E.M., (2008).
  • People can also check their total investment in any sector instantly with the help of internet banking, whole investment till date will appear infront of the consumers which is very easy for the consumers to calculate and think for their future aspects.
  • These word defines that the entities which are not under the control of the group. It generally involves the interest in those entities which are generally not consolidated in the usual course of business activities to develop the clients transaction and for particular  opportunities for investment. The given table at the down side is representing the full assets figure which are of un structure manner and in which the group has an peculiuar interest in the reporting time and these group major proportion to loss in connection with those interest. The full information regarding the unstructured balance sheet is provided which is showing the size of the business to the investor. The main disclosure to loss from the interest of the group in unconsolidated balance sheet of the group which is showing the maximum loss the group is needed to report as the conclusion of its engagement with entities of unstructured unconsolidated figures regardless of the chances of loss being occurred. They are nature wise considered as contingent and these may help him in funding commitments given by the group to the structured entities of unconsolidated balance sheet

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