Business Innovation and Future Capabilities for HSBC - CW2 Report

This report provides an overview of HSBC's innovation strategies and its future in the banking industry. The introduction defines innovation and its importance for business growth. The main body discusses the future of the industry, organization innovation requirements (micro-finance, biometrics, internet of things, and chatbots), and future innovation capabilities (data security and face detection) for HSBC. The report emphasizes the need for HSBC to adopt new technologies to improve customer services and data security. It highlights the importance of biometrics for security and the potential of the Internet of Things and chatbots for enhancing customer experience. The report concludes by emphasizing that HSBC should invest in future innovation to remain competitive and provide better services to its customers. The report also includes references to previous coursework and relevant academic sources.

CW2 Individual Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of previous coursework...............................................................................................3
Purpose........................................................................................................................................3
Structure.......................................................................................................................................4
The Future of the Industry 2022 and Beyond..............................................................................4
Organization Innovation Requirements 2022 and Beyond..........................................................5
Future Innovation Capabilities for HSBC...................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is the practical working process of implementation of the new ideologies
which can provide the beneficial result and outcome. In general way, it is the procedure of the
invention of developing the good idea which can create a value to the particular ideology in
effective manner. To run any kind of business, the individual organization is required to adopt
and bring the innovation at their workplace from where they can be able to grow and develop
themselves in the market definitely.
However, in the previous study, it has mentioned the different aspects in relation to
introduction to innovation, history of the chosen organization, its existing performance and
capabilities whereas the current report will illustrate the future of the industry and organization
innovation requirements further for getting the effective and appropriate results (Teigland, Siri,
Larsson, Puertas and et.al., 2018). The chosen company named as HSBC which is a British
multinational bank and provides financial services. However, the report will include the brief
about the innovation and a valid purpose and structure which defines the innovation
implementation at the workplace in definite manner. Also, it will highlight the future of the
industry and organization innovation requirements in future and beyond. At last, it will include
building of the future innovation capabilities for the organization and provides the better results.
MAIN BODY
Overview of previous coursework
The previous study has chosen the HSBC organization which is banking sector who helps
and supports the people on financial areas. A company has required to bring the innovation at
their organization from where they can be able to grow and develop themselves in definite
manner. The previous study has included the importance of the innovation and existing
innovation which the company is using (Omoregie, Addae, Coffie and et.al., 2019). However,
now it is the time to bring the innovation in effective manner from where the company can get
the profitable outcome.
Purpose
The main aim and purpose of conducting this report is to reflect the future of the banking
industry in the context of implementation of the innovation where it is important to be
understood and apply it in appropriate way which deliver the results effectively.

Structure
The present report will include the different areas where it will firstly highlight the
introduction part and then it will cover up the future of the industry and beyond where it will
allow the company to take the appropriate decision. Thus, the report will also cover up the
organization innovation requirements which will provide the effective results and outcome to the
company and can fulfil the requirements definitely. Also, it will highlight the future innovation
capabilities in regard to company HSBC where at last the conclusion part will be final part of the
report.
The Future of the Industry 2022 and Beyond
From the past decades the baking sector has been able to use the banking application in
the smartphones where it has given a kind of freedom the users and people to manage their
finance and economy with their own and according to their wants. But, however the HSBC
banking will grow and develop more effectively with the help of innovation or a new ideology
which will allow them to obtain appropriate outcome (Stulz, 2019). Looking at the present
generation, in next 10 years the technology will provide and offer the personalized financial
support instant at the home of the people with a high tougher cybersecurity as it is also important
factor to be considered while banking. HSBC company is a multinational industry which is able
to provide the appropriate and beneficial services to their customers due to regular
implementation of the innovation at the workplace which allow and approaches the customer to
use the services effectively.
The main aim and purpose of the banking industry is to provide the effective financial
support to their customer and clients from where they can be able to grow and develop in definite
manner. Thus, the future of this banking industry seems very bright and full of innovation as by
looking at the current situation of increasing usage of the digitalization will make this industry to
grow far away. With the rapid increasing of the digital transformation at the workplaces like
banking sector making the industries to obtain the good outcome and results efficiently (Abbasi,
Ali and Bibi, 201. The HSBC organization is able to develop themselves more efficiently with
the help of these new technology developing day by day and opening up the new ways to keep
the financial system safe and secured which will provide the satisfaction to the customer’s. In the
research, it has been identified and forecasted that the banking organization HSBC will be able to
get the appropriate and successful growth by adopting the new technologies which will help and

support them to provide the better services to the clients which will enable them to obtain the
effective outcome.
The technology development has provided the different ways and opportunities for the
HSBC to hold them and use them in beneficial manner which will make their company to
acquire the successful growth and development. Financial service providers also has to provide
the appropriate knowledge of using the new technologies which are used by the organization
such as artificial intelligence and big data analytics a principle manner as it will make the
customer and investors to understand the effectiveness of the technologies and also able to quite
good results from the customer which satisfy their needs and requirements (Al-Faihani and Al-
Alawi, 2020).
Organization Innovation Requirements 2022 and Beyond
The innovation is the most important factor an individual organization should consider
obtaining the appropriate growth and development. The HSBC organization adopts and keeps
their focus on bringing the innovation on regular basis which made their company to be
successful and able to attract maximum number of consumers. However, the HSBC organization
can apply or adopt some new technological areas which will fulfil the company and customer
requirements as well in definite manner. Thus, here demonstrating some innovation requirements
which the mentioned company can adopt and can obtain the beneficial results and outcome
effectively.
Micro-finance: The micro-finance is a service which has been offered to low-income individual
majorly who are excluded mainly from traditional banking. This kind of services is provided to
the small business people who cannot afford more and increased amount of interest on regular
basis. However, this service is not provided majorly by the banking sector whereas the HSBC
company can bring the innovation by implementation of the micro-finance services which will
help them to obtain the appropriate and definite amount of results effectively (Arslanian and
Fischer, 2019). Providing such services will allow the lower income and small business
enterprises to do the business with the traditional financial ways from where the HSBC will be
able to obtain effective outcome.
Biometrics: Today, the technology has been increasing day by day, where the banking industries
are also required to adopt and implement some useful and beneficial technology at the workplace
which can benefit the company. However, the biometrics is the kind of machine which helps to

provide the safety and security of the information of the customer. Biometrics are the human
fingerprint authenticity where it can be used to identify the customer information by verifying it
by the fingerprint security which is known as biometrics. Even, the mobile banking also
developed the biometrics security at the smartphones to verify the customer and client identity.
Internet of things: Internet is the network system of devices which help the customer and
individual human being to enable the functions. Adopting this innovation at the mentioned
banking organization will change the nature of the banking sector and allow the customer to
utilize it in ethical manner. This internet of things will ensure the people to do the payments
digitally and can obtain the effectiveness. However, using the internet of things will provide the
beneficial result and outcome to the company and provides successful growth for the future as
well (Chipeta and Muthinja, 2018).
Chat-bot: The chatbot is the software which automatically translate and do the language
processing to automate the responses of the queries of users. The chatbot is an artificial
intelligence where it enables the communication via text or videos on the different websites,
messaging. The HSBC bank can utilize and adopt this innovation at their workplace which will
help them to tackle the customer who raise their queries regarding the services company
providing where overall it will help to manage the customer relationship and provides effective
outcome.
Future Innovation Capabilities for HSBC
Determination of the future innovation capabilities can be referred to as identification of
one’s own potential in terms of innovating and inventing something new within the market.
Mainly innovations take places in order to cater to the needs of the users by determining the
problems faced by customers and help them in resolving the same by providing them with
effective solutions. The HSBC is an international bank which provides its customer with a wide
array of products and services within the market and help them in innovating something new in
order to address the challenges faced by the users. The future innovation capabilities for the
HSBC banks are explained below:
Data security:
Data security is one of the most important element in today's business world, every
business organization have details of their customer allowing them to record and perform further
process accordingly. In banking sector, data security is important element, client who provide

their most and valuable information demand security of their data. HSBC bank is well know for
its data protection, this company have high tech and advancement in banking process where they
ensure all information is safe. However, due to rapid increase in online payment process,
customer are demanding HSBC to provide security when they use online payment (Ryz and
Grest, 2016). This bank is linked with certain online payment party who provide and act as third
party and allow customer to send and receive money safely.
HSBC need to focus on increasing innovation capabilities that help them to meet
customer requirement, data security is major issue when it comes to online payment. Either,
HSBC should provide high tech security to their user using different payment application, or
they have to develop their own innovative service portal and plan to make online payment
process easier. Data security is major concern for every business, this is because customer need
proper procedure that allow customer to perform transaction risk free. Data security is area
where HSBC have to develop innovation capabilities allowing them to provide smooth service to
customer. HSBC bank have data protocol allowing customer to be safe, their data is safe and
secure with data protection provided by the bank.
Face Detection
One of the banking service is to provide the customers with the facility of using lockers
within the banks. The banks provide the customers with the facility to book a locker with the
bank for a certain charge in which the customer has the right to keep his valuable products
safely, such as gold, expensive ornaments, money, documents or various other products which
the customers want to safeguard and protect from the others (Sibanda, and et.al 2020). Therefore,
the HSBC bank should innovate the feature of face detection within their banks in order to
safeguard the lockers. The HSBC bank should scan the faces of the customers of the company
who have been using the locker services within the bank. The keys and biometric cards can be
used by others in order to get the access of the locker. But using the face recognition and the face
detection will only allow the main users to access their lockers. Therefore, the HSBC bank
should focus on implementing the use of face detection within the locker services in order to
enhance the services provided to them.
Use of robotics

Robotics can be described as a branch of engineering which has completely changed the
operations and functioning of the business organization all over the world. In today’s world,
robotics has become an essential part of each and every organization in different types of
industries all over the globe. The use of robotics has helped the organizations in enhancing their
productivity, efficiency and effectiveness in the work performed by them (Kornelakis, and et.al
2022). The robotics have made it easier for organizations to conduct a wide of activities within
the organization and also has contribute to a decrease in the works performed by the human
beings. The HSBC is still using robotics in various forms such as using a financial software in
order to maintain the regular business transactions within their systems. However, the use of
robotics can be increased within the company.
The HSBC bank can innovate and develop a robot within their organization which has
each and every information fed within itself in relation to each and every employee of the
company and the customers of the organization. The company should develop a robot which is
capable of scanning the customers who are visiting the branch and scan their documents which
they have brought before the customer enter the branch. The software should be able to recognise
on the door itself who is an existing customer of the company or who is a new visitor. This will
help the company in safeguarding the interest of the customers within the bank and also help
them in determining the true intentions of the visitors (Kornelakis, and et.al 2022). When an
individual would not be allowed to enter within the premises, the operations team will coordinate
with the individual and determine the reasons for which he has arrived, And, similarly provide
them with the required services within the company.
Payments through wearables
It has been determined the banking is becoming digital all over the world rapidly. Earlier,
the people used to pay only in the forms of cash. But with time, debit cards were launched which
allowed the customers to withdraw the cash from ATMs and pay to someone as and when
required. As time passed and technology grew, the use of debit cards was possible in order to
conduct online transactions as and when required. And now, there are several apps in the market
which allows the users to pay the merchant directly without using any kind of cards or other
essentials. The general public all over the world is completely moving towards the active use of
digital transactions and started to keep a minimum amount of cash with them. This is so, because
paying online has become very convenient for them and they do not feel the need to keep the

cash in order to buy something or to pay someone. These apps allow the person to pay anytime
and anywhere within the world. However, in today’s times these apps can only be used on
mobile phones (Danis, and Biggs, 2021). This gap can be used by the HSBC bank in order to
address the issue. The HSBC bank has the option to make such apps with relation to their
organization which allows the customers to make use of these apps without using their phones.
This can be done if the HSBC takes an initiate to develop apps or upgrade their existing app in a
way that it allows the users to pay using the wearables. The wearables might include smart
watches, iPad, iPod and various other such devices.
Voice banking
In a survey conducted by a Financial organization, it was identified that the human beings
are lazy. This means the public and the customers are constantly looking for innovation in each
and every field in a way which help them in making their lives easy (Sarta, Durand, and Vergne,
2021). In other words, it can be said that the human beings are becoming lazy day by day with an
increasing in the use of technology and the innovations with the help of technology in each and
every field. The Apple company has provided its customers with a personal assistant in their
devices which helps the users in carrying out their certain tasks which be performed via phones.
The personal assistant provided by the Apple Company to its users is named as Sire. Siri helps
the users with a wide range of tasks. The users only have to command the Sir with respect to the
tasks that needs to done, for instance, the user can say “Hey Siri! please play this song on
YouTube.” and the work is done. All a person needs to do is provide the Siri with details of the
task you want to assign to him. Similar is the Alexa which helps the users in carrying out various
activities. On the similar note, the HSBC has also the option to launch the concept of Voice
Banking in order to enhance the service provided to its customers (Chowdhury, and Islam, ). The
Voice banking feature will be a feature on the banking app of the HSBC which will allow the
user to command the app with all the specific details about the banking task that an individual
want to conduct. The voice banking will allow the user to automate the banking function only by
using their voice. There will not be any requirement for the users to make use of their hands in
order to carry out a task. The users will be able to open their account, carry out a transaction,
check their account balance or any other kind of banking activity with the help of their voice.

CONCLUSION
The above mentioned report has summarized the importance of the innovation in detailed
manner where the mentioned organization is required to obtain this concept for getting the
definite result and outcome. The report has included the brief about the future of the industry and
also mentioned the innovation requirements in regard with the organization which will allow the
company to achieve the successful results. However, it also highlighted the future innovation
capabilities for the company and provided the understanding in effective manner.

REFERENCES
Books and Journals
Abbasi, F.K., Ali, A. and Bibi, N., 2018. Analysis of skill gap for business graduates: managerial
perspective from banking industry. Education+ Training.
Arslanian, H. and Fischer, F., 2019. The future of finance: The impact of FinTech, AI, and
crypto on financial services. Springer.
Chipeta, C. and Muthinja, M.M., 2018. Financial innovations and bank performance in Kenya:
Evidence from branchless banking models. South African Journal of Economic and
Management Sciences. 21(1). pp.1-11.
Omoregie, O.K., Addae, J.A., Coffie and et.al., 2019. Factors influencing consumer loyalty:
evidence from the Ghanaian retail banking industry. International Journal of Bank
Marketing.
Stulz, R.M., 2019. Fintech, bigtech, and the future of banks. Journal of Applied Corporate
Finance.31(4). pp.86-97.
Teigland, R., Siri, S., Larsson, A., Puertas and et.al., 2018. The rise and development of
FinTech: Accounts of disruption from Sweden and beyond. Routledge.
Ryz, L. and Grest, L., 2016. A new era in data protection. Computer Fraud & Security, 2016(3),
pp.18-20.
Chowdhury, M.A.I. and Islam, S., Impact of 4 th industrial Revolution on the total Operations
system of the HSBC Bank.
Danis, M. and Biggs, D., 2021. Building the future of advisory in private banking. Journal of
Digital Banking. 5(3). pp.231-239.
Kornelakis, A., and et.al 2022. Robots at the Gates?.
Sibanda, W., and et.al 2020. Digital technology disruption on bank business
models. International Journal of Business Performance Management, 21(1-2), pp.184-
213.
Sarta, A., Durand, R. and Vergne, J.P., 2021. Organizational adaptation. Journal of
management. 47(1). pp.43-75.
Al-Faihani, M. and Al-Alawi, A.I., 2020, October. A Literature Review of Organizational
Cultural Drivers Affecting the Digital Transformation of the Banking Sector. In 2020
International Conference on Data Analytics for Business and Industry: Way Towards a
Sustainable Economy. (ICDABI) (pp. 1-6). IEEE.