29 June 2017
Visit cib.db.com

HSBC chairman calls for policy debate over customer data

03 August 2015  |  10999 views  |  0 HSBC Branch 4

HSBC chairman Douglas Flint has called for a public policy debate on the ownership and use of consumer transactional data, as rapid technological change enables banks to assimilate and store vast amounts of personal financial information.

Flint's comments come as the bank reports a ten percent increase in profits for the first half of the year and embarks on a major restructuring that is intended to save $5 billion per annum by 2017.

As part of the overhaul, HSBC has allocated a $1 billion spend in digital technologies over the next two years to reduce frontline and service roles, while reducing its branch square footage by 20% in seven key markets.

In a statement accompanying the release of the results, Flint says: "There is no doubt that banking is in a period of fundamental change as a consequence of technological developments that, firstly, allow storage and analysis of an almost unlimited amount of data and, secondly, allow customers to directly access third party providers when transacting or investing."

He says better use of data will allow more accurate knowledge about the customer to be built, leading to improved customer segmentation and less risk of mis-selling in the future. The same data, together with transaction monitoring, will also enable the bank to enhance its ability to identify bad actors within the system and reduce the cost of financial crime.

However, the sheer scale of data to be collected and stored demands clarity over responsibility for data security and transparency over who has access to that data and for what purpose, argues Flint.

"Customers need to understand the value of their data so that they can assess the bargain that is being offered by nontraditional providers in return for their financial footprint," he says. "Customers also need to know in a disaggregated service model to whom they should complain if a transaction goes awry."

There are also bigger concerns over financial stability, as the world's banks build ever larger digital databases of financial credentials and transaction data which will need "best-in-class protection from cyber crime. This will require even greater co-operation between the industry and public sector law enforcement and intelligence services than exists today."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

HSBC to slash jobs and overhaul IT

HSBC to slash jobs and overhaul IT

09 June 2015  |  9538 views  |  6 comments | 16 tweets | 10 linkedin
Corporate banking the next frontier for mobile payments - HSBC

Corporate banking the next frontier for mobile payments - HSBC

01 June 2015  |  12537 views  |  0 comments | 25 tweets | 34 linkedin
HSBC publishes mortgage account information on the internet

HSBC publishes mortgage account information on the internet

16 April 2015  |  5479 views  |  0 comments | 7 tweets | 9 linkedin
HSBC seeks 'sexy' data scientists

HSBC seeks 'sexy' data scientists

19 July 2013  |  11737 views  |  1 comments | 18 tweets | 9 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
visit wavestone-advisors.co.ukvisit www.finastra.comvisit www.www.fisglobal.com

Top topics

Most viewed Most shared
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
9372 views comments | 19 tweets | 38 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
9022 views comments | 10 tweets | 6 linkedin
hands typing furiouslyThe EU and blockchain: taking the lead?
7752 views 0 | 8 tweets | 7 linkedin
Mastercard eyes opportunities to profit from sharing economyMastercard eyes opportunities to profit fr...
7456 views comments | 6 tweets | 6 linkedin
Body blow for PayKey as Apple orders Westpac off its turfBody blow for PayKey as Apple orders Westp...
7075 views comments | 12 tweets | 14 linkedin

Featured job

Six Figure Base + Commission + Stock Options

Find your next job