IMP: Analysis of HSBC Online Banking System Issues and Solutions

This Integrated Management Project (IMP) analyzes the online banking system issues faced by HSBC, including IT glitches and customer complaints about login problems, error messages, and app malfunctions. The project examines the problem, analyzes current operations, and explores the impact on people and performance, referencing relevant models like the Guest Model of Human Resource Management and adoption models such as the Theory of Reasoned Action and Technology Acceptance Model (TAM). It investigates leadership styles, particularly autocratic and democratic approaches, and their relevance to addressing the challenges. Furthermore, it explores creativity, innovation within the banking sector, and the financial implications of online banking systems, including cost savings and customer attraction. The project offers a comprehensive overview of the issues, theoretical frameworks, and potential solutions related to HSBC's online banking challenges.

Running head: INTEGRATED MANAGEMENT PROJECT (IMP)
Integrated Management Project (IMP)
University Name
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Authors’ Note

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INTEGRATED MANAGEMENT PROJECT (IMP)
Table of Contents
Part 1:.........................................................................................................................................2
Part 2:.......................................................................................................................................21
Theoretical background:...........................................................................................................21
Reflective Discussion:..............................................................................................................33
References................................................................................................................................40

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INTEGRATED MANAGEMENT PROJECT (IMP)
Part 1:
Online banking system issue in HSBC
Description of the issue
Analysis of current operations of the HSBC reveals the fact that the bank has suffered
severe IT glitches and their clienteles have complained regarding their inability to log in to
their respective banking accounts. Also, there were certain customers who complained as
regarding receipt of error messages at the time of attempting to access both online as well as
mobile banking accounts. There are also other instances of technical issues that have
prevented different customers from acquiring admittance to the online banking service and
withdrawing money. In addition to this, there are also examples of card as well as website
issues, mobile application connection error, issues in personal internet banking and non-
functioning of HSBC app on android application (Hanafizadeh et al. 2014). Furthermore,
HSBC spokesperson informed that they have addressed the issue, apologised for the
inconvenience caused and have added that the reason of the IT failure has not yet been
ascertained.
People:
Performance- The consumers possess the capability to undertake transactions online that
were conventionally reserved for different tellers inside a specific branch (Sikdar et al. 2015).
Essentially, teller transactions have turned down as users of internet have the handiness of
transferring funds, presenting deposits and applying for withdrawals from personal
computers.
Online system of banking leads to enhancement in criminal actions. In essence, personal
information is also shared by means of online banking business transactions (Bell and

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Hindmoor 2018). The enhancement in online banking actions has acquired attention of
different institutions outside conventional system of banking.
People Management Model (Guest Model): Human resource management model intends to
be comprehensive since it attempts to contain six vital components of HRM namely, policy
choices of HRM, outcomes of HRM, consequences of long term period and a specific
feedback loop. The current model asserts that the human resource manager presents specific
strategies that demand specific exercises and the time when executed can lead to particular
outcomes. In essence, these outcomes contain behavioural associated, performance linked
and financial rewards. As suggested by Chellapalli and Kumar (2016), the Guest Model also
stresses the logical sequence of six different elements namely, practices of HR, outcomes of
HR, behavioural outcomes’, performance outcomes together with financial consequences.
Again, alternatively, financial outcomes rely on performance of employees that in turn can
direct towards results of action associated behaviour of employees. Naheem (2016) asserts
that behavioural outcomes can be considered to be the outcomes of commitment of
employees, overall quality as well as flexibility that can consequently be influenced by varied
human resource practices. Essentially human resource practices have the need to be in
harmony with strategies of human resource that are invariably aligned to different strategies
of business enterprises.
Models of Adoption of e-banking
Over the last two decades, learners in Information and Communication Technology (ICT)
have recommended several themes along with models to illustrate and forecast models of
adoption of technology. Nonetheless, significant models take in “Theory of Reasoned Action,
Theory of Planned Behaviour along with Technology Acceptance Model” (Aburub 2015).
Theory of Reasoned Action:

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INTEGRATED MANAGEMENT PROJECT (IMP)
Theory of Reasoned Action stems from social psychology and this recognizes varied
determinants of conscious deliberate behaviour (Kilic 2016). This supposes the fact that
individuals are rational and are constantly analysing pertinent behavioural principles in the
procedures of structuring their attitudes towards the behaviour. In particular, the theme is
founded on three different constructs such as behavioural intention, attitude as well as
subjective rules. In essence, attitude can be regarded to be the sum of diverse faiths regarding
a specific behaviour when analysing the specific behaviour. Kanno (2015) suggests that
subjective rules can be the effects of individuals in social environment on behavioural
intentions. Normally, this indicates towards faiths of individuals, weighted by the
significance of attributes of each one of the viewpoints that can exert influence on one’s
behaviours.
Technology Acceptance Model (TAM):
TAM proposed by Fred Davis asserts the fact that the theory was adapted from the theme of
Theory of Reasoned Action (TRA). In particular, this model can be considered to be
extensively utilized for exploring acceptance of different users of advanced technologies. As
per this particular model, the utilization of information system relies on perceived ease of
utilization and perceived effectiveness regarding the technology (Alalwan et al. 2016).
Desirable otherwise undesirable attitudes towards any specific technology can be considered
to be an important function of perceived simplicity of usage along with perceived
effectiveness regarding technology. In particular, the first outlook, perceived effectiveness
can be regarded to be subjective probability of users that can enhance job performance by
implementation of particular application system. The second outlook indicating towards
perceived ease of usage can be considered to be the degree and extent to which the user
anticipates the target system to be devoid of efforts. Liang and Nguyen (2018) mention that
perceived usefulness is said to be influenced by perceived ease of use. The strength of this

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kind of beliefs, attitudes as well as intention in forecasting actual behaviour of individuals
principally relies on extent and degree of enumeration specificity attained. In a bid to
implement these themes to the technology acceptance model, it is essential to enumerate
beliefs concerning usage of technology in place of the technology in itself (Schoenmaker
2018).
Leadership and management
The biggest challenge in the arena of banking segment is the leadership. Increase in
online actions of banking gains attention of different institutions. Leader has the courage,
potential and competency to carry out the transformation. These three barriers include
regulation, culture as well as inheritance that generate fake barriers and are produced by
leadership. A bank CEO can choose to sit idle and accomplish nothing. Majority of the bank
can generate greater returns from shareholders than by investing in certain things (Rahaman
2016). A specific leader who is risk averse in nature can think about investing in the things
that need to be carried out.
This generates a culture that is risk averse in nature and concentrates on doing things
that need regulations. This necessarily calls for no regeneration of legacy. In essence, these
banks acquire incremental augmentations and maintain equivalence with the segment;
however, they do not attain anything unique. Attaining something unique takes audacious
leadership that necessarily contains a vision (Rahman et al. 2017). Also, implementing online
banking system in a differentiated bank needs to have a vision, tough leadership and fortitude
to make something come about.

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INTEGRATED MANAGEMENT PROJECT (IMP)
Theories on Leadership Style:
As suggested by Al-Malkawi et al. (2016), Kurt Lewin along with his associates
undertook studies that stressed on styles of leadership and identified two fundamental styles
as mentioned below:
- Autocratic Style of Leadership:
An autocratic leader arrives at a decision, informs members of the staff regarding their
part of responsibilities and keeps a close watch and thoroughly supervises the employees
(Alese et al. 2018).
- Democratic Style of Leadership:
A democratic leader inspires engagement in diverse processes of decision making,
functions with firms’ employees in a bid to decide roles of different members of the group
and does not engage in the process of supervising different employees.
In this context, it can be hereby mentioned that keeping in mind the issues of online
system of banking, the management of HSBC Bank can consider implementation of
employee centred style of leadership. Implementation of this leadership strategy can help
administration of HSBC in concentrating in human necessities of different members of the
staff of the organization while nurturing relationships (Umoren et al. 2016). In essence, the
leader can stay sensitive to different sub-ordinates and effectively communicate for
development of trust, for supporting and respecting while maintenance of welfare. This is a
democratic form of leadership style where different sub-ordinates of the corporation HSBC
can easily learn skills associated to decision making and adapt themselves to changed
organizational circumstances (Sharma and Lenka 2017).

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Creativity and innovation
Innovation implies making something new. Banks no longer limited themselves to
conventional banking actions, but explored new avenues to enhance business and capture
novel market. Within the Banking segment, Digital-only bank Ally introduced in the United
States in the year 2008 and at the time, it was one of the first of its kind. But multiple new
players have entered the scene in the last few years (Martins et al. 2014). In essence, these
consist of Monzo, Tandem, N26, as well as Fidor in the area of Europe, together with
Digibank in the India and B1NK in the segment Kazakhstan.
Essentially, these banks have important advantages over traditional institutions, such
as freedom from historical tech restrictions and the fees associated with brick-and-mortar
branches. And in many nations, financial regulations also help these banks flourish. In
Europe, these digital-only banks will soon be able to access customer data from traditional
banks. Internet/online banking also indicates towards online banking. As suggested by Siegal
et al. (2018), virtual/web/internet banking can permit the users to carry out business
transactions with the aid of internet. Essentially, internet banking delivers different functions
that are delivered conventionally at a regional branch of a bank namely deposits of money,
disbursement of bill and many others.
Financial Aspects:
Way online banking system solutions positively influence financial aspects of the
business enterprise

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INTEGRATED MANAGEMENT PROJECT (IMP)
A conventional procedure of payment as well as settlement takes in a buyer to seller
cash transfer or else payment information. The system of actual payment settlement occurs in
the financial processing network. Cash payment calls for withdrawal of buyers from bank
account, cash transfer to the seller and deposit of the seller to the account. Unlike the
conventional system, the novel and sophisticated system of payment helps in appropriate
transmission of currency as well as notes to necessarily data (Alkhatib and Alaiad 2017).
Fundamentally, this transmission is carried out through telephone lines and transponders of
satellite and this is known as e-payment mechanism. This online system of banking thereby
helps in the process of online payment of bills, viewing transactions, transferring money
between different accounts, mobile banking and syncing with different money applications.
Thus, the online system of banking can financially help the banks by non-payment of
overhead for different physical branches and wages to employees to staff the physical
branches. This, cost advantages help the banks to pass savings of cost to their clients in the
firm of higher rates of interest and at the same time low levels of fees. In this way, customers
of the banks also get attracted to the set higher levels of yields and lower levels of fees
delivered by the banks. This in turn as well enhances profitability of the banks. Whilst several
customers get attracted to different higher amounts of yields and lower amounts of fees
delivered by different online banks, these benefits also get tempered by the inadequacy of
branch locations and restricted services provided (Sikdar et al. 2015). Based on personal
banking habits developed by people, these kinds of tradeoffs might perhaps play an important
facet in the process of decisions of deposit of funds with the online bank.
The e-banking that helps in saving time in different banks, delivers ways for
international banking, delivers banking all through the year, offers appropriately organized
management of cash for essentially optimization of internet subsequently helps in
development of business of the bank. In addition to this, e-banking also delivers convenience

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INTEGRATED MANAGEMENT PROJECT (IMP)
with respect to capital, labour, requisite time that is required in order to undertake
transactions. Also, this e system of banking also helps in acquiring advantage of different
assimilated services of banking and banks also help in competing in different novel markets
and can acquire novel customers and develop share of markets (Shaikh et al. 2017). In
addition to this, this delivers some kind of security along with privacy to different customers
by utilizing high-tech encryption along with security technologies. Existence of different
banks relies hugely on potential to attain economies of scale in minimizing overall
asymmetry of specific information between different savers as well as borrowers. The main
question in this regard is the way IT can help the banking segment to sustain economies of
scale while transferring from physical banking to essentially online banking. The role of
information and communication technology and its effect on financial segment can permit
worldwide economies to establish a financial infrastructure system before instituting an
entirely functioning financial infrastructure. As e-banking is comparatively cheaper, this
involves lessened costs of processing for different providers and lesser search for diverse
consumers (Tarhini et al. 2015).
Marketing:
Way the problem/solution influence marketing dimensions: Online Banking Affecting
Marketing Decisions
Online banking delivers customers with a suitable mechanism of undertaking business
from the comfort and
Banks differ in size as well as capabilities. There are varied small banks and that
might have one otherwise more than one offices. There are several large commercial banks

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that might probably have thousands of office branches across the entire nation. Irrespective of
bank size, each and every branch has the requirement to customize marketing stratagems to
serve immediate area (Montazemi and Qahri-Saremi 2015). Essentially, this refers to tellers
along with account representatives who speak English along with prominent language in the
community.
Banking can be considered to be time-consuming while online banking can make the
same easier for different entrepreneurs to manage most basic banking actions. Taking
advantage of different online banking can permit the process of maximization of time and
online security dimensions of different banks (Suvittawat 2015). This can necessarily protect
different sensitive information.
Business owners can necessarily access different online accounts as often as required
without the acquirement of concealed fees. Online banking system makes it easy to access
account information at anytime. This makes banking feasible and in this case it is important
to access an online account (Bultum 2014).
Strategy:
Business Strategy:
Internet banking can be considered to be the outcome of integrating conventional
banking services as well as technology by means of different websites that different
customers can utilize for accessing their accounts. HSBC can consider specific marketing
strategies for internet banking:
- 4 Ps of Marketing: Product can be regarded as one of the most components of particularly
marketing mix. Essentially, this applies to particularly product features namely, design of the
product, overall quality of different products as well as others. Essentially, without the

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specific product, the remaining of the marketing mix can be considered to be useless. In
essence, the most elementary issue about a specific product is that it fulfils a specific want
(Alhabash et al. 2015). The consumers have the need to purchase different products not only
for satisfaction of wants but also for contentment, pleasure otherwise even for attainment of
benefits they offer.
Figure 1: Marketing Mix
(Source: Alhabash et al. 2015)
Product: In the current context of HSBC, it can be hereby mentioned that there are four
different groups that include private banking, investment banking and global banking as well
as commercial banking, wealth management as well as retail banking. This delivers its clients
with list of different products as well as services that vary slightly from one nation to another
(Bakshi et al. 2015). Commonly, overall product/service portfolio for the enterprise HSBC
takes in personal banking, non-resident banking, financial planning services, corporate
banking, business banking, cash and payment management, factoring services as well as
trade, institutional banking, treasury as well as capital markets and custody and clearing.