In CONVERSATIONS on July 8, 2011 at 7:46 am
The Hongkong and Shanghai Banking Corporation ...

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HSBC is investing big-time in this capability as part of their One-HSBC initiative. This initiative is by far the largest single initiative with the most significant chunk of HSBC’s annual $6 billion global IT budget dedicated to this platform. (Banking on the Future, LORD OF)
Six Billion Dollars is a vast sum of money to spend on computer management systems. It is spent with the aim, amongst other things, first to globalize banking by standardising, as Brett King puts it, HSBC’s view of the customer relationship. These funds are part of the cost of moving technology away from transactional banking towards a more customer-focused operation.
Exactly what does this mean?
It means that banks like HSBC and NAB are spending vast fortunes of cash in order to change their businesses from transaction banking (where the bank makes its money primarily from transacting with the client when normal bank services are rendered) towards a more “customer-focused approach” (where the bank is re-focused from a financial service operation into a world where anything the customer needs becomes banking, and hence revenue stream. )
One example, which was in the news recently here in the USA, is the participation of the retail banks in hoarding and selling the private banking data of their clients to Data Mining Companies who in turn sell it to the highest bidder in the open market. Hence, your profile, updated with your specific spending habits, (ie. your record of buying a large old homestead) is sold to building suppliers who then target you as a future consumer of building supplies. This is, as are many other strange services, future banking from a customer-focused point of view.
In effect, HSBC, for one, is spending $ 6 Billion in order to turn the lens around, away from the inner working of the bank, the efficient operation of statements and payments, money supply and internal stability, towards the customer. And with this eye turned to the customers, in effect, they become the “stock” of the bank, the resource of the bank, which resource can be mined (data) and manipulated by the bank for unsurpassed profits.

Beware of the machine!


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