HSBC raises digital banking game
Europe's biggest bank HSBC is planning to invest between $15-$17bn in new technology as part of a new growth strategy.The eight point strategic plan presented to investors is designed to return the bank to "growth mode" after almost a decade of declining revenues and also features further investment in Asia, a strengthening of its international presence and a promise to turnaround its US business. More specifically, the bank is hoping that the technology investment will help it to achieve a return on equity of 11% by 2020.
$20 billion worth of assets moving to Digital Vault
In earlier indications of what kind of digital transformation HSBC is examining, Cointelegraph reported a few months ago that the bank would implement a new blockchain-based custody platform called Digital Vault by March 2020. HSBC plans to move $20 billion worth of assets to the platform and aims to digitize paper-based records of private placements in order to increase standardization and speed up processes in the growing industry.
HSBC has been preparing itself to adapt the ongoing changes in the banking industry
Back in 2017, the bank appointed a panel of advisors to explore ways to integrate disruptive technologies such as blockchain, artificial intelligence and biometrics into its business model to reduce cost. Find out more about Rob Clegg on his website here. You can also visit the Robert Clegg bio page to learn more.