Tuesday, November 23 2010 16:58
HSBC Bank Armenia enlarges its clientele and service package
ArmInfo. Astrid Clifford, Chief Executive Officer, HSBC Bank Armenia cjsc Interview to Arminfo
HSBC Bank Armenia retained its positions in the banking system in the second half of 2010. What was the reason of that success? What changes have been made to the strategic development plan of the bank?
We have had an excellent year so far and have achieved profit before tax of AMD4.7 billion in the first 10 months, which is much better than expected. I'd say there was a slight change in strategic direction this year, partly because there was a new CEO, which is natural, and also because last year was such a difficult one and 2010 has proved to be much more positive. A lot of our success has been due to the fact that we have been very active in commercial lending. We have lent nearly $80 million to companies of all sizes this year, which is the highest amount of all local banks. We also continue to hold the largest share of customer deposits.
HSBC Bank Armenia is actively involved in the market of online services. How many Internet-banking and telephone-banking customers do you serve?
We have around 5,000 internet banking customers, and 16,000 telephone banking customers, and so around 40% of our retail customers enjoy these direct banking channels. We also offer a version of internet banking to our commercial customers, HSBCnet, and more than half of all commercial non-cash transactions are performed via this channel.
What are your expectations from direct banking services till the end of the year and for the next year? What growth rates do you anticipate?
We expect to increase our base of Internet Banking users by another 1,000 customers this year, which will mean we have 6000 users by the end of 2010 (around 17% of our overall customer base). Anticipated growth for 2011 is an additional 4000-4500 users.
We recently launched a new product for companies - Corporate ATM Cards - so that they now have quick, free and 24/7 access to their funds. They can also transfer funds, check balances and obtain mini statements. We already issued more than 300 cards and we expect this service to be very popular.
Does the bank plan to introduce any new online services? What projects are planed for the next year to increase the number of online services customers?
As I mentioned above, we already provide direct banking services via three main channels: internet, telephone and ATMs. Next on our list is to introduce multi-functional ATMs which support cash deposits.
Are there any service range expansion news? Will your customers enjoy any novelties?
In the next few weeks we will start providing insurance services, in association with a local insurance companie, offering our customers the convenience of buying their motor, home, medical, travel and personal accident insurance in our branches. We will also be relaunching AMD mortgages, car and personal assistance loans which, according to customer surveys, promise to be popular.
We now started to offer an Employee Cumulative Savings Product to our corporate customers. This has been specifically designed as a retention tool in the increasingly competitive local labour market. The employer can make regular contributions to an account in the name of the employee, which can vary based on seniority, performance etc., and these funds can be made available to the employee if they complete a designated period of service. Employees can then choose to top these savings up with their own contributions. The product is extremely flexible to allow companies to design something which works for them, and of course offers competitive rates of interest in various currencies.
How many ATMs do you serve and do you plan increasing the number of cash dispensers in 2011? Will the bank install cash-in machines? If so, how many?
Our ATM network of approximately 50 machines is the largest in Yerevan. We are planning to increase this number by at least 3 before the end of Y2010 and by around 10 next year. Yes, we are planning to introduce cash-deposit machines in 2011, mainly at our prime locations.
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