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PROJECT REPORT
ON
INVESTING CUSTOMER BASE
OF HSBC BANK – AN
ANALYSIS
GUIDED BY:
SUBMITTED BY:
Dr. D.K.DHUSIA SARWAR
ALI KAMAL
JAMIA MILLIA ISLAMIA B.I.B.F (FINAL
YR.)
NEW DELHI Enroll no: 08-
4673 Roll
no: 08-HON-1291
Contents
1. Introduction: Overview of Financial Sector in India.
3. Executive Summary
INTRODUCTION
Overview of Financial Sector in India.
HSBC in India
HSBC's origins in India date back to 1853, when the
Mercantile Bank of India was established in Mumbai. The
Bank has since, steadily grown in reach and service
offerings, keeping pace with the evolving banking and
financial needs of its customers.
Corporate Banking
HSBC has well-established, long-term corporate banking
relationships with large domestic Indian corporations
and foreign multinationals operating in India. Services
include term and working capital finance, trade
facilities, corporate deposits, syndications, payments
and cash management services and factoring.
Business Banking
HSBC's Extra Mile Business Banking offers two types of
account to small and medium-sized businesses - The
Business Account and the Business Vantage Account.
Services include Business Phone Banking, Business
Doorstep Banking and Multi Branch Business Banking.
HSBC Premier
HSBC Premier provides its customer:
International Recognition
Wherever the premier customer lives or travels across
the globe, with HSBC Premier, he or she can always
expect a warm welcome at an International Premier
Center.
Worldwide Assistance
HSBC Premier always remains by the customer’s side
from working overseas to moving abroad. This includes
setting up of accounts, property advice, online banking
and the individual support of an HSBC Premier
Relationship Manager.
Investment Expertise
HSBC Premier provides global insight and financial
experts when it comes to considering new international
investments.
PROCESS/METHODOLOGY OF STUDY
Methodology adopted
The design chosen for our study is the causal design. The
causal research study is typically concerned with
determining the frequency with which something occurs or
the relationship between two variables. The method applied
in this project is as stated follows:
Analysing the Secondary data.
Developing the questionnaire.
Conducting Customer Survey
Analyzing the Primary Data collected and interpreting
the data.
The study requires a clear specification of who, what, when,
where, why, and how.
Who: The target audience for our research is males and
females between the age group of 18 and above who
are currently investing with HSBC Delhi. The audience
were divided into the following categories:
Businessmen
Unemployed/Retired
Service
Procedure
The procedure followed for conducting the study can be
shown in steps as:
1. Studying about our products and services.
2. Determining the objective of the project.
3. Developing the survey instruments such as
questionnaire.
4. Conducting personal interviews of audience by
segmenting them according to age-group, sex, annual
income, occupation and some other demographic
features.
5. Analyze and study the data collected.
6. Report Writing.
The whole process after the decision of the objective can be
given in the form of the simple flow chart below:
Design Methodology
Determine Feasibility
Develop Instruments
Select Sample
Conduct Pilot Test
Revise Instruments
Conduct Research
Analyze Data
Prepare Report
Process adopted
1. Gaining knowledge about the products and
services:
Reading about the product with the help of material
available on the net and the material made available by
the bank was the first step that was undertaken. This
gave not only in depth knowledge about what is been
offered by the bank but also proved useful while
developing the questionnaire.
Steps in the Development of the Survey Instruments
The main instruments required for survey was a well-
developed questionnaire. The questionnaire
development took place in a series of steps as described
below:
2. Consumer Survey:
The people play an important part as a clear perception
of people if known can help the organization formulate
better strategies. Studying the need levels of the
people regarding the bank and its services was a vital
component of the research.
Research Design:
A two stage Research was conducted:
1. Secondary Research:
Data was collected from websites and catalogues to
understand products and services and related
functionalities of the bank. Latest information available on
internet and in various journals about the current and
future market also forms part of research.
2. Primary Research:
A Primary Research was conducted:
The questionnaire was prepared for the investing clients
and following areas covered:
Preference over various forms of investment
Their sources of information
Consumer profile and knowledge
Awareness of bank’s wealth management services
Satisfaction level
Service Requirements
Desirable services and suggestions
Sampling Plan
Elements: The target population of the study included
the investing clients of HSBC Delhi. Above the
age of 18 yrs.
Sample size: 60
DATA COLLECTIONS
Data Collection Plan:
The Research consisted of secondary data search from the
following sources:
• Catalogues
• Websites
In this, information about different banks, different features
the banks are offering to their investing clients, their market
share , their spread in the northern region and their areas of
focus. For the conclusive research, questionnaires were
developed on the basis of secondary data to gather
information on the research objective.
A pilot study was conducted to test these questionnaires. In
this sample of 10 people was picked up from the target
population on convenience basis, so as to determine the
limitation and deficiencies in the questionnaires.
The final draft of the questionnaire (see Appendix) was then
prepared on the basis of the observations from the pilot
study. These were then finally filled by 60 investing
customers, for the conclusive study.
Finally the data collected was analysed with the help of
descriptive statistics, cross tabulations . Therefore, it can be
said that the data collection is an important part of the
project.
Data Information
Raw numbers
SEGMENTATION
GEOGRAPHIC
Region Delhi
DEMOGRAPHIC
Age Below 30,
30-45,
46-60
Above 60
Gender Male, Female.
Occupation Servicemen & Professionals (e.g. Doctors,
Architects, etc.), Businessmen,
Unemployed/Retired
Annual Income (in Below 5 lacs
Rupees) 5 lacs-10 lacs
10 lacs-15 lacs
15 lacs-20 lacs
Above 20 lacs
Annually
Daily
100%
90%
80% Gold
70%
Real estate
60%
Direct equity
50%
40% Mutual Funds
30% Insurance
20% Fixed deposits
10%
0%
Below 30 30-45 45-60 Above 60
Fixed deposits:
It is considered to be a secured form of investment. As
age increases, the tendency to take risks diminishes.
The same is confirmed by the data collected, since
there is an increasing trend towards fixed deposits.
However , in the age group of 30-45 fixed deposits
account for only 4% since people focus on spending
more for building assets like house , car , etc.
Insurance:
Insurance has more or less a uniform trend. However,
people, after 60 do not qualify for many insurance
plans, therefore there is a decrease in the share.
Real estate:
As age increases people invest more in real estate as it
is comparatively a more secured form of investment. It
is one of the most preferred forms of investments.
Gold:
People in the age group of 30-45 and 45-60 invest 33%
and 31% in gold. Investment in gold is more due to the
fact that in the middle age people tend to buy gold or
their personal needs as well as future needs like
children’s marriage etc. However in the age bracket of
60 and above the overall desire to make purchases
reduces. Therefore investment reduces.
KEY FINDINGS
The branch in Delhi is catering to a mass market which is
very knowledgeable and well informed about where to
invest their money. Not only they are capable to make
wise decisions with their investments but the majority also
takes personal initiative to keep a track of their
investments.
Risk taking capabilities of males and females differ.
Females are more comfortable making safer investments
than highly profitable ones.
They rely on more on authentic sources like business
channels and financial reports more than opinion of
financial advisors or their social circle.
Their focus over their investments varies according to
their demographic segmentation. For instance, as the
income level increases, their personal initiative over their
investments and investment decisions decreases and their
reliance over experts increases. Firstly, because in higher
income levels attention is spread across many different
things at a time and ones own work life demands a lot of
focus. Therefore due to time constraints initiative goes
down. Secondly, as income increases, volume of money
invested increases, as a result; to cover risk, customers
prefer to take more assistance from financial experts.
Also, they are in a position to afford such services.
The tapped market is quite convinced to make
investments in mutual funds, fixed deposits and
insurance, however all are not sourced through the bank.
The expected reasons revolve around products offered
and their relationship with the bank.
The customers’ preference over different types of
investments varies with the age band. With increasing
age, people tend to make more secured form of
investments. That is the reason why investment in stocks
decreases with age.
More than half of the customers hold great significance to
their bankers’ advice. The customers are more or less
regular in tracking their investments. However, one third
of the customers cannot be classified as highly satisfied
customers; though HSBC’s unique selling proposition is its
quality of services. The organization needs to identify and
fill in the gaps in service. One major area of concern
should be to decrease the service time as suggested by
many customers.
CONCLUSION
There is a potential to increase investments from the
existing customers which would increase the SOW (Share of
Wallet) of each customer for the bank.
The challenges facing the banks today are coping with new
markets, demanding customers, the quest for efficiency, and
the need to control reputation and operational risks. Major
Banks have begun the process of reinventing themselves to
deal with these issues and others. Despite the number of
challenges facing the industry, opportunities for growth are
plentiful – particularly through expansion in new markets,
technology and personalization to enhance customer
relationships and new products and advisory services to
meet the needs of retiring baby-boomers. The biggest
opportunity facing the global banks is catering to and
satisfying the needs and desires of the niche segment – the
high end customers.
RECOMMENDATIONS
Tailored advice
The banks’ value proposition to the mass affluent
should be quality advice on a full range of financial
products. The advice needs to add as much value as
possible and therefore has to feel bespoke, even though
it may be off-the shelf. This is a rather difficult task, as
the mass affluent customers do not like to feel
standardized. In order to achieve the customization, the
bank could look into the following areas for
improvement:
Special Services
In order to strengthen the relation and loyalty among
customers , the manager must take initiative in
performing special services for example remembering
the client’s and his family members’ birthday. Such
activities are being practiced but in a different way. For
example, it would be more meaningful to send flowers
to the client by the relationship manager’s name more
than the banks’ because his trust factor is more
dependent on his relationship with his banker than the
bank itself.
APPENDIX
Part A : Company Profile
THE HSBC GROUP
Foundation
The HSBC Group is named after its founding member, The
Hong Kong and Shanghai Banking Corporation Limited, which
was established in March 1865 to finance the growing trade
between China and Europe.
Commercial banking:
HSBC provides financial services to small, medium sized
and middle market enterprises. The group has almost
2.5 million of such customers, including sole
proprietors, partnerships, clubs and associations,
incorporated business and publicly quoted companies.
Private banking:
Private banking provides financial services to high net
worth individuals and their families.
Part B: Questionnaire
1. Rate the following investment options according to your
preference.
1 4 5
2 3
Highly Not very Least
Preferable Neutral
Preferable preferable Preferable
Fixed
Deposits
Insurance
Mutual
Funds
Direct
equity
Real Estate
Gold
1 4 5
2
Highly 3 Not Least
Import
Import Neutral Import Import
ant
ant ant ant
Risk Factor
Duration Of
Investment
Past
Performance
of
investment
Popularity
and brand
name
Recommend
ation by
Financial
experts
Recommend
ation by
peers and
relatives
Related tax
benefits
1. Which of the following combinations is highly
acceptable to you?
PERSONAL INFORMATION
Name : _____________________________________
REFERENCES