Technological Disruption in UK Banking: A Case Study of HSBC Bank

This presentation explores the impact of technological disruption on the UK banking sector, with a specific focus on HSBC Bank. It investigates the significance of digital transformation, reasons behind increasing prevalence of technological disruption faced by HSBC, and how technological failure impacts the bank's online banking operations, market reputation, and customer satisfaction. The presentation also suggests preventive measures to minimize technical failure problems and promote growth.

Case Study Proposal
To investigate technological disruption issues and its
impact on UK Banking sector: A case study of HSBC
Bank

Research overview
• According to TheCityUK report for 2016, financial
sector is a main key driver of economy which
accounted for 12% of the total economic output.
• In the current time, technology downtime is a major
difficulty faced by UK banks.
• on an average, banks lose more than 20 minutes
productivity on each worker due to faulty IT.

HSBC Holding Plc
• It is one of the largest bank of UK which operates
globally with having 3900 offices across world and
headquartered in London.
• It operates in both banking and financial service
industry and listed on LSE under FTSE 100 Index.
• It is serving 38 million consumers through its
worldwide network in 67 countries.

Operational segments of HSBC Bank
• Investment Banking
• Commercial Banking
• Wealth Management and Retail Banking
• Global Private Banking

Research aims and objectives
Aim: The research study targeted at investigating technological disruption
issues and its possible impact on UK banking sector. For this, a specific
focus will be paid on one of the largest bank, HSBC Holding Plc.
Objectives:
•1. To determine the significance of digital transformation in banking sector
•2. To find out reasons behind increasing prevalence of technological
disruption faced by HSBC Holding Plc
•3. To assess how technological failure impact HSBC bank’s online
banking operations, market reputation and customer satisfaction
•4. To suggest preventive measures to minimize technical failure problems
and succeed growth

Online users in banking sector
• In a survey, it is found that
58% service users prefer
digitalization wherein they
can get their account details
easily on net, provide
advices them on wealth
creation and others.

Significance of digitalization in UK banking
sector
• Digitalization provided more flexibility and
convenience to the services users.
• Considering UK, over a few years, UK mobile banking
users has been grown at more than thrice times with
monthly rate of 8% in 2010 to 27% in 2014.
• Digitalization of banking services provided ease of
use, greater convenience & control to users
• It benefited banks with cost cutting and rising revenue.

Challenges in digitalization
• Develop new skills in their administrators and
data managerial team
• High cost of infrastructural change
• Competition with Fintech Start-ups

Rising technological disruption
• Cyber risk

Rising technological disruption reasons
• Poor IT system & support
• Technical failure
• Slow internet speed
• Connection error
• Use of outdated software

Consumer online banking experiences

Fintechs are opportunities not competitors
• World Retail Banking report
determined that 65% retail banks
consider FinTechs as their partners
rather than competitors.
• Banks have an opportunity to
partnering with such companies and
thereby avoid disruption issues and
maximize their internet connectivity
with the consumers and build
favourable reputation.

Impact of technological failure on bank
• Slow connectivity and technical error unable service-users to log-
in their accounts results in rising number of complaints and less
satisfaction.
• In 2015, UK newspaper, Daily Mail reported that bank’s
consumers regularly complaint on Twitter that HSBC web page
was not properly functioning.
• Due to such technical error, 275,000 bank payment were not been
made on time results in rising number of consumer complaints.
• Disintermediation is a threat faced by banks in which, they lose
their direct interaction with the consumers and unable to maintain
close relationship with the users, however, improving consumer
interface is the key requirement.

Research Methodology
• Philosophy: Interpretivism
• Approach: Inductive
• Design: Analytical
• Data collection: questionnaire survey
• Sample size: 15 managers
• Sampling method: Purposive sampling
• Data Analysis: Statistical Package (SPSS)

REFERENCES
•Bokhari, Z., 2014. How technology is threatening the traditional European retail
banking. [PDF]. Available through: <
https://www2.deloitte.com/content/dam/Deloitte/pt/Documents/financial-services/
dttl-fsi-uk-Banking-Disrupted-2014-06.pdf>. [Accessed on 16th October 2017].
•Dakers, M., 2016. HSBC’s online banking platform goes down. [Online]. Available
through: <
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12082198/hsbc-
online-bank-platform-payments-are-down-glitch.html>. [Accessed on 16th October
2017].
•Locke, C., 2017. The irresistible rise of digital banking. [Online]. Available through:
< http://www.bankingtech.com/56242/the-irresistible-rise-of-digital-banking/>.
[Accessed on 16th October 2017].