Competitive Analysis  on HSBC
Subject: Business | Topics:

HSBC bank is one of the leading banks in Bangladesh. They give their services in last 9 years. In every year they are increase their service line. If they don’t give the appropriate services then they can’t survive in the banking industry. Because the entire customers need 100% accurate services. If they don’t get this accuracy then no one can save you or your company. Here in the banking industry the switching cost is very low. So all the banks are trying to give the best services to his customer. And they do it very well. In this topic we are trying to compare HSBC Bank against the other bank in Bangladesh. Here in the comparison we focus various sides which we gathered from the different bank.

 

Bank Loans and Interest Rate:

  We already know that banking industry is servicing company. All the banks are trying to give the best services to his customer. All the time or year they are trying to introduced some new loans and services. Here they are trying to create the waves. All the banks are give that types of loans which is no one can introduce before. When they find out that it is already in market then the bank just reduces the interest rate of that loan. Because here without reducing the interest rate they cant survive in the market. When we see in the bank like HSBC Bank, Dutch Bangla Bank, Southeast Bank, Prime Bank and NCC Bank then find out that most of the loans of the bank are not match with each other. Because all the banks are trying to give different services to their customer. But in the case of interest rate we see that all the banks are charge to higher level or rate of interest rate. Because the through to the interest rate they earn lots of amount of money. In the next page we show different types of loans of different bank and their interest rate. Here we are including the HSBC Bank, Dutch Bangla Bank, Southeast Bank, Prime Bank and NCC Bank and compare with each other.

 

HSBC Bank

Dutch Bangla Bank

Prime Bank

Southeast Bank

NCC Bank

Home loan, Car loan, Furniture loan, Marriage loan, Motorbike loan, Student loan, Travel loan, Personal loan and Personal Secured loan.

Student Transport Scheme, Taxi Cab Scheme, Durant and Rider Transport Scheme, Rescue Transport Scheme, Doctors loan

 

Small enterprise, Medium enterprise

Advance Against Share, Information Technology Sector,

Home lone

Agricultural Scheme, Commercial Lending, Working Capital, House Building Loan, Small/Cottage Industry, Large/Medium Scale Industry,

Loan against Export

Agriculture sector,

Small and Cottage Industry,

Service Industry, Household durable and Consumer credit, Information Technology Sector, Energy Sector

Interest Rate

13.5% – 14%

Interest Rate

12% – 16%

Interest Rate

14% – 15%

Interest Rate

7% – 12%

Interest Rate

12% – 14%

 

Here in the above chart we find out that all the banks interest rate is not less then 12%. But some of the cases the Southeast Bank give the lone within below 10% interest rate. The Interest rate of HSBC bank is 13.5% – 14%. Few years ago the total interest rate of HSBC bank was 18.5%. With in three years they reduce it around 4.5% – 5%. So it is good for them. Their rate is good when we compare it to another bank.

 

Number of Branches:

  When one bank is making a profit then they are trying to expand their business as many as location is possible. It is also happen in the banking sector or industry. In every year the number of bank is increasing and the number of the branches is also increasing. But when we compare the HSBC bank and the other bank in the Bangladesh then we find out that the number of branch of HSBC bank is lower then the other bank. The Dutch Bangla bank have 21 branches, the social investment bank have 24 branches in different district in Bangladesh. But in HSBC Bank have only 5 branches in Bangladesh (4 in Dhaka and 1 in Chittagong). So in the case of branch HSBC bank is not the good position then the other bank. In the below we give the different types of bank and there branches:

 

Types of Bank

Number of branches

Standard Chartered

16

Southeast Bank

27

HSBC Bank

5

Prime Bank

37

Social Investment Bank

24

Dutch Bangla Bank

21

 

Graphical Presentation:

 

In the above graph we find out that in the case of branch the condition of the HSBC bank is not good then the others.

 

ATM Booth:

We are living in the twenty- first century. In here we need all types of modern technology for our living. And for that reason the entire bank are trying to combination between the services and the informational technology Or IT sector. ATM is the one of the modern technology in the twenty first century. With an ATM card, we can perform a wide range of transactions through our Automatic Teller Machines (ATM) at any time that is convenient to us, day or night. The use of ATM card is increasing day by day. And all the bank are trying to give the facility to their in this sector. To withdraw the money and for any transaction ATM booth is needed. But the number of ATM booth is very low of HSBC Bank. The total booth is only 5. 4 ATM booths in Dhaka and 1 in Chittagong. But when we see in the Standard Chartered Bank then find out they have 24 ATM booth in all over the country and 18 in Dhaka. Which banks have how many booth it is in the below:

 

Name of the Bank

Total ATM Booth

Standard Chartered

24

HSBC Bank

5

Dhaka Bank

9

Southeast Bank

7

Graphical Presentation:

In the above graph we see that the condition of the HSBC bank is not then the other bank. The total number of branch is lower then the Dutch Bangla bank, Dhaka bank and also Southeast bank.

 

Total Assets:

We can say that assets are the engine of any company or any servicing company. Because of the assets all the companies are running day by day. Here are including cash in hand, balance with Bangladesh bank, balance with other bank, loans and advance and non banking assets. When the assets of any company are more then we say that the condition of the company or bank is good. But when we see in the HSBC bank in Bangladesh then find out that the total assets of them are lowed then the other bank. But it’s a multinational bank. They are open office 81 country and the total numbers of office are 7000. in Bangladesh the total assets of HSBC bank is lower then the bank like Southeast bank, Dutch Bangla bank, Dhaka bank and prime bank. The assets of the different bank are as follows:

 

Name of the Bank

Total Assets ( Taka In million)

Southeast Bank

23,142.35

Dutch Bangla Bank

24,560.55

Dhaka Bank

28,178.09

HSBC Bank

16,013.34

Prime Bank

32,361.62

 

Graphical Presentation:

 

In the above graph we see that the total assets of HSBC bank are 16013.34 million. And it is very low when we compare it with the Dhaka bank and Prime bank.

 

Total Liability:

                  The liability is disadvantage for any company. If the total amount of the liability is more the condition of the company is not good then the others. When we see in the below chart the liability of HSBC bank is lower then the other bank. Here only the reason is the total branches of them are lower then the other bank. So here the HSBC bank is in the weakest position then the other. When we see in the Prime bank then find out that the total liability of them are 30,121.81 in million but they have 37 branches in all over the country. But the HSBC bank have 11,214.00 Taka in million as a liability. So here we find out the per branch liability of HSBC Bank more then the prime bank. In the below we show the total liability of few bank by chart and also by graph.

Name of the Bank

Total Liability( Taka In million)

Social Investment Bank

20,302.68

Mercantile Bank

23,262.69

HSBC Bank

11,214.00

Dutch Bangla Bank

23,582.15

Prime Bank

30,121.81

In the above chart we see that the total number on liability of the Prime Bank is more then any other bank. And it is 30,121.81 million Taka. But the HSBC bank have the lowest amount of liability it is good for any of the bank.

 

Graphical Presentation:

 

In the above graph we see that the total liability of the entire bank is more then the HSBC Bank. Here the main cause is the number of branch or also the customer is not greater then ten other bank.

 

Total Profit:

The main target of all the company in this world company is to make a profit. Some of the company done it very comfortably and some of them can’t make a profit and some of them are in the break event position or no profit – no loss position. We know that the service company like banking sector, educational sector and also the telecommunication sector are also trying to make a profit as more as is possible. But there main target is to give the services and then make the profit. Because no company can survive without making any profit. Here in the profit level of the HSBC bank is lower then the other bank. Because the number of branches of HSBC bank is very low for that reason the total number of customer is low. But when we see in the profit level of the Dhaka bank, Dutch Bangla Bank, Southeast Bank and the Social Investment bank is better then the HSBC Bank. So here we can say that the situation of the HSBC Bank is not good then the others. But here we make an average of profit level of a single branch in a HSBC Bank then it is more then the other bank. By chart and graphical presentation of the total profit level of few banks are as follows:

 

Name of the Bank

Total Profit ( Taka In million)

Dutch Bangla Bank

236.35

Dhaka Bank

357.57

HSBC Bank

129.54

Southeast Bank

256.06

Social Investment Bank

193.68

Here we show the profit level of the bank in the year 2004.In the above chart we see that the total number of profit level of HSBC Bank is very low and it is 129.54 million Taka.

 

Graphical Presentation:

 

In the above graph we see that the total amount of profit of Dhaka bank is greater then the any other bank.

 

Total Operating Expenses:

                             

Name of the Bank

Total Operating Expenses

(Taka in million)

Dhaka Bank

523.03

Dutch Bangla Bank

470.17

HSBC Bank

208.57

Southeast Bank

377.94

Prime Bank

824.22

 

Graphical Presentation:

 

Industry key success factors:

A key success factor is very important factors for any company. In the key successful factor we discuss what the standard is in the banking industry. We see that day by day the number of the bank is increasing. So the standard is higher day by day. We are living in the twenty first century. At the time when we are find out what is the standard in the banking industry we take the bank like

  • Standard Chartered bank
  • The Dhaka bank
  • The prime bank
  • The Social Investment Bank
  • Dutch Bangla Bank
  • National Bank
  • Mercantile Bank

24 Hours Banking:

After the investigate of the above bank we find out that all the bank are try to give that services which is related to the information Technology or 24 hour banking. The services like

  • The phone banking
  • ATM card
  • Easy pay
  • Credit card
  • Phone lone
  • SMS Banking

But when looking at the HSBC bank then we find out that all the services they are already is taken. And some of the cases they are talking pro-active strategy. When we are seeing the services of the HSBC bank then find out that at least 50% of them are based on the IT sector. But only the services like SMS Banking is not include in there services.

Different Types of loan:

Not only the IT sector but there are also some other sector which is important or standard in the banking sector. Every bank have various types of loan and the discussion of al the above bank we are find out or create a standard in the banking industry. In the cases of loan the appropriate standard are as follows:

 

  • Home loan
  • Car loan
  • Machine loan
  • Agricultural Scheme
  • Furniture loan
  • Wedding loan
  • Motorbike loan
  • Small and Cottage Industry

When we see in the strategy or services of the HSBC bank then find out that all the step already taken. So we can sat that some time the HSBC bank are talking the pro- active strategy or create the wave and some time they are go with the wave. And it is very important for any company. The HSBC bank find out what is the of Standard Chartered bank, the prime bank, the city bank, the oriental bank, the Dutch Bangla bank and the Southeast bank then find out what will they do now.

 

Driving Force of HSBC Bank

                        Every company or service company has some services. Some time it is match to the other company or some time it is not. Every company has some strategy or product line or services which is better then the other. Some time the consumers are known them because of the product or services not because of the name. And this dominated force is known as a driving force. And every company has this. The first task of any company is that they must determine what their driving forces are. Because of using this driving force any company beat their rivals or competitors.

HSBC bank is one of the leading banks in the banking industry in Bangladesh. It’s a multinational bank and also a well known bank in all over the world. HSBC Bank has 81 countries and total office is 7000. And it is happen only because of there driving force. All of the company or any services company must have some driving force and HSBC not out of this. HSBC is a services company so driving forces is more important for them.

The major advantages or the driving forces of the HSBC bank are there a service which is related to the modern technology. One of the examples of them is Easy pay. With the help of this any one can pay the bill any time. It is open 24 hours a day and 7 days a week. So any one can pay any time on matter it a Friday or holiday and day or night It is value less he have the accounts in the HSBC Bank or not. Through to the easy pay anyone can pay the bill of

  • DESCO
  • DESA
  • Grameen Phone
  • Aktel
  • American Life Insurance Company (ALICO)

Another dominating force of the HSBC Bank is the phone banking. Through to the phone banking any one can operate his accounts or get any information about his accounts and it is from your home. And anyone can do this but must have account in the HSBC Bank. It open 24 hours a day, 7 days a week and 365 days a year. Anyone can use phone banking to…

 

  • Check the balance on customers primary and linked accounts
  • Transfer money between customers accounts
  • Hear details of customers last five transaction
  • Order a statement
  • Order a cheque book
  • Pay bills to pre-designated third parties in local currency
  • Enquiry about time deposit interest rates
  • Report an ATM cards lost or stoles
  • Enquiry about foreign exchange rates

Phone loan is another driving force of the HSBC Bank. Through to the phone loan anyone can get a loan. No other banks in Bangladesh have this type of services. In this case they just create a wave. Loan by phone provides customers another option for easy accessibility to HSBC services. By calling this number customers and non-customers alike can give details and find out whether they are eligible for a loan. The final loan approval is still dependent on them providing valid documentation. The loan by phone just provides the customers with an idea whether they can become eligible for a loan from HSBC pending proper documentation. HSBC is always on trying to provide the best service for its customers and non-customers alike. Loan by phone provides them with yet another option to connect with HSBC

One of the major driving forces of the company is increase globalization in the industry. Company came into the global market only because of reduce the risk of the company and to maximize the profit. HSBC bank is the multinational bank. They opens there office in 81 countries and 7000 offices all over the world. They run aggressively in Bangladesh. In every month they introduce some new services which are new in the banking industry in Bangladesh. With in last 12 months they introduce 5 types of different loans and also introduce phone loan, Amanah import finance.

 

HSBC bank gives us a service. So we say them as a service company. And service innovation one of another driving forces of them. When we see in the product line of HSBC bank then we find out that in every month they introduced some new services or restructured the old services. In that case some time they reduce the interest rate of the loans. HSBC bank is only bank who give and introduced the new services in every month. No other banks do better then that. In last 12 months or I year the HSBC Bank introduced 5 types of different loans (Student loan, Motor bike loan, Furniture loan, wedding loan and CNG conversion loan), Amanah Import trade express, electronic DC advising, Account management services, payment and collection, Hexagon cheque writer, Electronic banking.

Another important driving force of the HSBC bank is business banking. No one bank in Bangladesh takes this type of banking business services. Choice and control – these two are fundamentals in running the customer finances. HSBC bank gives to their customer both: a choice of ways they can access there money, and then control when you get there. Choose from HSBC bank Customer Service Centers, ATM, Telephone and Internet Banking solutions. Then use the information and expertise at customer’s fingertips or at the other end of the line – anytime they like. HSBC’s Business Banking services are designed to help the customer operate efficiently and profitably.

 

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